«On January 1, 2021, the Law of Ukraine
of “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on
Ensuring the Collection of Data and Information Necessary for Declaring Certain
Objects of Taxation” dated December 17, 2020 № 1117 (hereinafter – Law № 1117)
entered into force.
No. 1117, amended paragraph 60 of subsection 10 of section XX of the Tax Code
of Ukraine (hereinafter – the Code), according to which foreign companies with
a representative office in Ukraine, registered at the Ministry of Economy shall
submit to the tax authorities the documents for their registration (as foreign
company) in accordance with the procedure established by paragraph 64.5 of
Article 64 of the Tax Code.
Under Order # 62, foreign companies are required to register with the tax authority by 19.05.2021.
the tax authority uncovers that a foreign company is conducting business in
Ukraine through a representative office without registration, the authority may
appoint an audit for the further inspection of such business activities.
According to the current legislation, such audits are possible starting from 1st of July 2021.
117.4 of Article 117 of the Tax Code states that a foreign company which
carries out its activity through a Representative Office without being
registered for tax purposes as provided for by Tax Code, shall be fined UAH
The current established procedure for the necessary registrations is unclear. Furthermore, it appears that the registration would apply only to representative offices that have commercial activity, i.e. sales activity. Although unclear, nevertheless, the requirement exists and currently it seems the registration should be completed on time to completely minimize any risk of penalties. Contact Leinonen Ukraine for further information and help with the registration process.
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