The State Tax Service of Ukraine has issued new guidance detailing the requirements for residence certificates needed to claim withholding tax exemptions or reductions under tax treaties. The guidance is for tax agents making income payments to non-residents who are the beneficial owners of the income and residents of countries with tax treaties with Ukraine.
Under the new guidelines, tax agents can apply withholding tax exemptions or reductions if the non-resident submits a certificate confirming their residence in the relevant treaty country. These certificates must be issued by the competent authority of the treaty country and must comply with Ukrainian legislation, translation, and notarisation requirements.
The guidance also highlights simplification measures for the legalisation of residence certificates under the Hague Apostille Convention, The 1961 Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (HCCH 1961 Apostille Convention) entered into force for Ukraine on 22 December 2003.
Failure to submit a qualifying residence certificate means the income will be taxed as per the Ukraine Tax Code, emphasising the importance of compliance with the outlined procedures.
