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 ► Is There a Tax on Transfers From Abroad? - Perekaz24

Is There a Tax on Transfers From Abroad?

02.03.2021
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Many Ukrainian citizens have been living and working outside our country for many years. But many of them also have relatives and friends in Ukraine who need financial support. Therefore, the transfer of funds is an actual question. Fortunately, we live in a time of technological progress and money transfers are becoming easier and more affordable. With Perekaz24, you can transfer money at any time, being in one of the countries where the service operates (the list of countries is available here), in cash, or to the recipient’s card. Is there a tax on transfers from abroad? We will focus on this in our article.

Money Transfer Tax Law

Not so long ago, the head of the State Tax Service of Ukraine, Oleksiy Lyubchenko, said that it is necessary to increase the number of taxpayers in Ukraine. If we take into account the number we have at the moment, then the amount of the single social payment should be raised to 34%. For many entrepreneurs, this will simply be a heavy burden, and they will either close the business or even more “go into the shadows.” They saw a solution to the problem in migrants, offering to levy a tax when transferring money from abroad. However, it was not taken into account that labor migrants pay taxes in the country where they live. In addition, the money they send to Ukraine supports our economy. And they also give income to the state budget in the form of VAT, which is levied on all goods and services in the country that are bought or used by residents in Ukraine for money received from labor migrants.

The words of Oleksiy Lyubchenko made the migrants worried, discussions and assumptions began. Many people are wondering what amount of transfer from abroad is not taxed? In fact, financial experts are still convincing that the initiative to tax remittances from abroad is unlikely to be implemented. There is little likelihood that someone will vote for the law on the tax on remittances, or rather, for its draft.

Money Transfer Tax Law ► Is There a Tax on Transfers From Abroad? - Perekaz24

Types of foreign income

  • interest, dividends, royalties and any other types of passive income;
  • inheritance;
  • gifts;
  • winnings and prizes;
  • income from the performance of work (provision of services) under a civil and labor contract;
  • income from the lease (use) of property located outside of Ukraine to residents;
  • income from the sale of property located outside Ukraine;
  • income from the disposal of investment assets, including corporate rights, securities, etc.;
  • other income from any types of activities outside the customs territory of Ukraine or territories beyond the control of customs authorities.

According to the Law, transfers must also be included in the declaration. But if there is a family connection (husband and wife, parents and children, children and disabled parents), such transfers are considered to be made within the family, therefore they are not considered income.

So, for now, you can safely work and transfer funds to your loved ones in Ukraine using the Perekaz24 service.

Who is our service for?

If you work in the EU, the USA, or other countries, the sending of transfers from which is supported by our system, and someone close to you urgently needs financial support, our service is the ideal solution.

How to make a transfer?

To transfer funds, you need a computer or mobile phone, Internet access and the recipient’s card number. It is also possible to transfer in cash but to receive funds you will need to contact one of the branches of our partner banks in Ukraine.

If you are not yet registered in the system, you need to go through a simple registration, indicating your personal data. Next, we move on to the very process of transferring funds. To do this, you need to specify the recipient’s data and the number of his valid card. Online transfer is instant. The recipient will get a message about the receipt of a specific amount as soon as you press the “Transfer” button. If this is a cash transfer, then the recipient will need to contact the bank’s cash desk.

Is it safe?

We care about the safety of our clients because we understand that money is hard to earn. Therefore, we can guarantee that the transfer of money from the USA, Canada, Israel, European countries to Ukraine using the Perekaz24 service is completely safe. The service is provided on the basis of the permission of the Financial Supervision Commission (Poland) for the provision of payment services as a National Payment Institution, issued for Transfer24 Sp. z o.o. (IP5 / 2013) and permission of the NBU for the provision of services in the field of the international money transfer system, issued for Meest Corporation Inc. (53-02010 / 16274).

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