Recently State Fiscal Service released a personal tax consultation letter regarding the refund of tax incorrectly withheld on income derived from Ukraine sources by a non-resident entity. Generally a 15% standard withholding tax rate is applicable for Ukraine-source income derived by nonresidents and the tax must be withheld at the time of payment.
An application for refund may be submitted for excess tax withheld and remitted. Tax authority must issues response letter concerning the refund no later than five working days before the expiration of a 20-day period beginning from the date the application was submitted, and if a refund is granted based on the response letter, must provide the refund within five working days. However, a refund will not be granted if the taxpayer has an outstanding tax liability.
