Doing Business in Ukraine

The material covers:

• Economic and investment climate: Despite the ongoing war, Ukraine remains an attractive investment prospect, showcasing resilience and implementing reforms in key areas such as digitalisation, corporate law and the tax system. The country boasts a robust IT sector, a thriving agricultural industry, access to EU markets, and government initiatives to support investors.
• Forms of businesses. The most common forms are LLC and JSC. There is also the option of opening a representative office for a foreign company or operating as a sole proprietor. The requirements for registration, management, auditing, and disclosure of information about ultimate beneficial owners are described.
• Tax system: Main taxes are corporate, personal, military, VAT, customs duty, excise duty, property tax, land tax and rent. Rates, tax base, specifics of permanent establishments, transfer pricing rules, thin capitalisation and controlled foreign companies have been described.
• Special regimes and incentives: Diia.City — a special regime for IT businesses with tax and non-tariff advantages. Tax incentives are provided for certain categories of businesses and investors.
• Taxation of individuals: Individuals residing in the country are liable for taxation on their worldwide income, while non-residents are only obligated to pay tax on their income derived from Ukraine. Rates, base, military tax, single social contribution have been described.
• VAT and other taxes: VAT rates, administration mechanics, registration, specifics of import/export have been described. Additionally — customs duties, excise taxes, property tax, land tax, rent payments.