Dividend tax solutions in Ukraine
Handling dividend tax is an essential aspect of a company’s financial duties in Ukraine. It demands a thorough knowledge of intricate regulations and attention to detail. Our strategy aims to assist businesses in confidently tackling these issues, ensuring they remain compliant while discovering avenues for tax efficiency. By placing emphasis on accuracy and strategic planning, we help companies fulfill their tax responsibilities smoothly and successfully, offering reassurance in a continuously changing tax environment.
Dividend tax rate
In Ukraine, the tax on dividends differs based on the type of payer. Dividends from companies that pay corporate income tax (CIT) are taxed at a rate of 5%, whereas dividends from entities that do not pay CIT or from non-resident companies are taxed at 9%. Non-standard dividends are taxed at the regular personal income tax (PIT) rate of 18%. Additionally, all dividend income is subject to a military tax of 1.5%. Non-residents might face a withholding tax of 15%, which could be lowered under certain tax treaties.
Our dividend tax services
We provide a complete range of services designed to assist businesses in navigating the complexities of dividend tax in Ukraine. Our objective is to guarantee total compliance while enhancing your tax strategy, enabling you to concentrate on expanding your business. Our offerings encompass:
Dividend tax compliance
Our services for dividend tax compliance guarantee that all dividend distributions are reported and taxed accurately, fully adhering to Ukrainian tax regulations. We guide you through the complete process, offering expert advice on necessary documentation, withholding tax responsibilities, and filing deadlines. This support helps maintain your business’s compliance, reducing the likelihood of penalties and other tax-related challenges.
Dividend tax planning
We provide dividend tax planning services aimed at creating tax-efficient strategies to reduce your tax liabilities. Our team collaborates with you to pinpoint and utilize all relevant exemptions and treaty benefits. Furthermore, we assist you in structuring your dividend distributions to fit seamlessly with your broader financial strategy, ensuring that your tax strategy is both compliant and in harmony with your business objectives.
Dividend tax accounting
We offer comprehensive assistance in calculating withholding taxes on dividends, making sure that your financial reporting complies entirely with Ukraine’s accounting standards and international regulations such as IFRS. Additionally, we manage the reconciliation of tax accounts related to dividends with your general ledger, guaranteeing that your financial statements correctly represent your company’s financial situation.
Tax audits and representation
Should your business undergo a tax audit related to dividends, our tax audits and representation services are ready to assist you. We will handle the preparation of all required documents and advocate for you during negotiations and disputes with Ukraine tax authorities. Furthermore, we perform pre-audit evaluations to uncover and resolve any possible compliance issues before they escalate, ensuring your business is adequately prepared for any review.
State and local dividend tax compliance
We make certain that your business adheres to the diverse tax requirements in various jurisdictions within Ukraine. Our expert advice covers the specific local rules concerning dividend distributions, ensuring precise calculation and prompt payment of withholding taxes. By carefully overseeing your state and local tax obligations, we aim to reduce the risk of non-compliance, penalties, and other tax-related complications, enabling your business to function seamlessly in all pertinent areas.
International dividend tax advisory
For companies engaged in international activities, our international dividend tax advisory service delivers specialized assistance in handling cross-border dividend distributions. We provide strategic guidance on utilizing double tax treaties, optimizing withholding taxes, and ensuring compliance with international tax requirements. Our team helps you organize your global operations to enhance tax efficiency while also managing important issues such as permanent establishment risks and profit repatriation.
Dividend tax system
To effectively distribute profits, it is crucial to have a comprehensive understanding of Ukraine’s dividend tax framework. Our knowledge allows you to grasp the complexities of the tax system, including relevant exemptions and specific regulatory obligations. We assist you in managing the intricacies of dividend taxation, ensuring your business stays compliant while also strategically minimizing tax liabilities. By gaining a deep understanding of the dividend tax system, you will be well-prepared to make informed decisions that support your company’s financial objectives and mitigate potential tax burdens.
Contact us
To learn more about our dividend tax services or to talk about how we can help, get in touch with us.
Disclaimer
Tax laws and regulations frequently evolve and can differ depending on personal situations. The information shared here is intended for general guidance and may not represent the latest updates. It is strongly advised to seek the assistance of a qualified tax professional for specific and current advice tailored to your circumstances.