International Assignment Solutions

Our International Assignment Solutions team advises and coordinates all matters related to expatriate (mobile) employees, including compensation planning, preparation of tax returns, registration with the tax authorities and other assistance related to personal income tax and social contributions compliance.

Assignees to Ukraine (Inbounds)

To maintain their positive reputation, companies not only have to comply with all of the requirements of the tax law, but must encourage their personnel to do so as well. It is extremely important in Ukraine because it is the obligation of individuals to declare their foreign source income (including employment) by filing annual personal income tax returns.

Ukrainians assigned abroad (Outbounds)

Currently more and more Ukrainians leave Ukraine for international assignments. It is necessary to remember that even if they work and reside abroad, they may still have Ukrainian filing and tax payment obligations. We can assist such outbound assignees with the analysis of their Ukrainian tax return filing obligations, as well as with their tax compliance. Moreover, we will be glad to assist with the preparation of their tax returns, making Ukrainian pension contributions, assistance with utilising reliefs under an applicable double tax treaty, obtaining supporting documents for this and other related services.

The International Assignment Solutions group (IAS) of PwC Ukraine is uniquely qualified and includes specialists that have extensive knowledge and experience in the areas of personal income taxation, social security and migration / residency and work in Ukraine. In addition, as part of an international network of firms in more than 150 countries, we can provide the services you require not only in Ukraine, but also abroad.

IAS works in close relationship with clients to offer practical, multi-disciplined approaches to the increasingly complex challenges facing businesses and provides solutions related to any of assignees’ issues, minimising risk and offering opportunities to save costs.

 

Our services

We provide services for international corporations, Ukrainian companies and individuals to meet regulatory obligations.

Tax Compliance

Core services 

  • Preparation and filing of tax declarations (“tax returns on property status and incomes”)

We assist with the preparation of the annual / departure tax return, including computation of an individual’s personal income tax liability. We also advise on methods of tax payment and review / appealing tax assessments, if issued by the tax authorities.

In complicated cases, we can assist with preparation of a special report (for internal use) along with the tax declaration, which clarifies the tax calculations in the tax declaration.

Review of completed tax returns and tax calculations based on the effective legislation.

  • Post-arrival and Pre-departure tax briefings

The initial meeting with an expatriate is devoted to a brief discussion of the current Ukrainian personal income tax requirements and the provision of initial advice on individual tax planning. The departure meeting is dedicated to a discussion of the expatriate’s final Ukrainian income tax liabilities and requirements, as well as individual tax planning.

Additional tax services

  • Tax registration – obtaining a tax ID number, re-registration upon changing address in Ukraine
  • Application for confirmation of tax resident status for Double Tax Treaty purposes (may be obtained during the calendar year only)
  • Assistance with preparing documents for claiming benefits under an applicable Double Tax Treaty
  • Tax assessment review/assisting with appeals and litigation
  • Assistance with personal income tax payment (including payments from abroad)
  • Assistance with obtaining confirmation of taxes paid in Ukraine
  • Full assistance in dealing with the tax authorities to ensure all issues are resolved promptly and completely during an expatriate’s tax administration audit

Additional social security services

  • Preparation of documents necessary to register an individual for voluntary pension insurance
  • Assistance with obtaining confirmation of pension and social security contributions made in Ukraine
  • Assistance with obtaining certificates of coverage, where applicable by a respective Agreement

For the purpose of accelerating our cooperation with other regions and making such cooperation more effective, we make use of the global intranet network “PwC Tiger” and secure website “MyTaxes.pwc.com”, allowing all information to be shared online. Through this network and website, PwC Ukraine is able to communicate flexibly with clients and other PwC offices.

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Tax advice

We cover the following areas that impact individuals:

  • Personal income tax legislation and current practice in Ukraine  
  • Optimisation of tax consequences for cross-border moves, including analysis of Double Tax Treaties and personal income tax consequences in different jurisdictions
  • Employment legislation
  • Equity based plans (e.g. stock option plans)
  • Social security matters and pension issues (e.g. voluntary pension contributions)
  • Interpretation of Totalisation (Social Security) Agreements (e.g. certificates of coverage where applicable)
  • Currency exchange regulations
  • Structuring Provision of Personnel Agreements (PPA) and secondment agreements, as well as assistance with their implementation
  • Tax consequences of transactions with real estate / vehicles and other assets
  • Impact on personal income tax filing obligations of individuals registered as Ukrainian private entrepreneurs 

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Tax planning

  • Planning short- and long-term assignments to and from Ukraine
  • Developing tax effective employment structures for Ukrainian and foreign employees
  • Structuring agreements/contracts with expatriates
  • Structuring compensation packages 

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Contact us

Yury Zakharchenko
Senior Manager, IAS
Tel: +380 44 354 04 04
Email

Kristina Kochetkova
Manager, IAS
Tel: +380 44 354 04 04
Email

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