Individuals reporting in 2023 on income received in 2022

For those who have not yet submitted their tax declaration for 2022, we remind you that there is not much time left: the declaration must be submitted by May 1, 2023.

Who reports?

Individuals who received:

• income not from tax agents, for example, gifts from individuals whose value exceeds UAH 1,625, or remuneration from individuals for the work of a nanny or tutor, or income from leasing real estate and movable property to someone who is not a subject of commercial activity, or inheritance from persons who do not belong to the first and second degree of kinship or from a non-resident, etc.;
• income from independent professional activity (income of artists, writers, scientists, etc. – provided that such persons are not individual entrepreneurs or received income from their profession as hired employees);
• forgiveness of credit debt, the amount of which exceeds UAH 1,626;
• profit (loss) from investment operations, even if the operations were carried out through banks and brokers;
• foreign income;
• income from controlled foreign companies (although probably everyone will declare them in 2024).

And this is NOT an exhaustive list! If you are in doubt as to whether you need to declare this or that income – contact us for advice – we will be happy to help you.

In addition, persons who intend to receive a tax discount have the right to submit a tax declaration. But in this case, there is time until December 31, 2023.

And, individuals – foreigners who received the status of tax resident of Ukraine during 2022, also submit a tax declaration by May 1, 2023, or individuals – tax residents of Ukraine who intend to move to a permanent place of residence abroad (no later than 60 calendar days before departure).

There is also one important innovation that concerns those Ukrainians who received international financial aid during the war, as well as exercised the right of protection in other countries of the world. This year, such citizens must also submit a tax declaration for 2022 and declare such assistance as foreign income, while personal income tax and military levy on such amounts are not calculated or paid. That is, the declaration only indicates the receipt of such funds. But if you also received other foreign income, for example, a salary from a foreign company, then in such a situation we already act according to the general rules, at the same time we should remember about the avoidance of double taxation and the possibility of reducing and/or crediting taxes paid abroad against Ukrainian taxes.

Also, do not forget about non-application of fines in case of violation of the deadline for submitting a declaration during wartime, and do not panic if there is no REAL possibility to submit it within the specified time. We submit it as soon as possible or within six months of the end of martial law.

If there are still questions about “who” reports and “for what” – write to us and we will help you figure it out.