Download - TAXATION OF SEAFARERS’ INCOME IN UKRAINE
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TAXATION TAXATION
OF SEAFARERS’ INCOME IN UKRAINEOF SEAFARERS’ INCOME IN UKRAINE
INTERNATIONAL CREWING CONFERENCE
Speaker – Artyom Volkov
Senior Lawyer, Attorney-at-law
Head of Maritime Law Practice
ANK Law Office
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PAYERS OF INCOME TAX
UNDER UA LAW Individuals – residents, who urn income from Ukraine and foreign countries as sources of funds;
Individuals – non-residents, who urn income from Ukraine as source of funds;
Tax agents (e.g. employer).
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TAX RESIDENCE FOR INDIVIDUALS
Place of living in Ukraine OR
Permanent residence in Ukraine for 183 days OR
Citizenship of Ukraine
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INCOME TAX RATES
GENERAL RATE – 15%
up to USD 1 430 (as of 01.01.2013) income per month
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SPECIAL RATE – 17%
if monthly income exceeds USD 1 430 (as of 01.01.2013) amount in excess shall be taxed under 17%
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INCOME DECLARATION
Term of Declaration Filing – till May 1
Declaration can be filed earlier
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FOREIGN INCOME
Foreign income shall be declared and taxed in Ukraine except foreign income that should not be taxed
due to the provisions of Tax Code and Double Taxation Avoidance Agreements
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Double Taxation Avoidance Agreement
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UKRAINE CONCLUDED
Double Taxation Avoidance Agreements with 49 countries among which are:
• United Kingdom
• Netherlands
• Germany
• Turkey
• China
• Belgium
• USA
• Italy
• Portugal and others
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Paying of the Foreign Income Tax in other country should be proved by the relevant reference
issued by Tax Authorities
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TAXATION OF OTHER PAYMENTS IN SEAFARERS FAVOR
Loss of Life Compensation
Disability Compensation
Sick Pay
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Control of Seafarers’ Tax Paying
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Crewing Agencies as
Seafarers’ Tax Agents (?)
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Crewing Agencies cannot be a Tax Agent
Because they are not Employers
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PENSIONS FOR SEAFARERS
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Many Employers (mostly from EU) pays seafarers’ fees to the social (pension)
funds of country of incorporation
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International Agreements on Mutual Pension Provision
Mostly concluded with former USSR countries (e.g. Russia, Belarus, Georgia, Moldova) and
Eastern Europe countries (e.g. Latvia, Lithuania, Poland, Czech Republic, Slovakia)
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SOLUTION APPROACH
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Solidary System of Retirement Insurance
MAIN STAGES:
I – Application filing II – Concluding of Agreement
III – Paying of Insurance Fees
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Funded System of Retirement Insurance
May be realized by one of the following forms:
1. Individual Saving Fund in Pension Fund of Ukraine; 2. Individual Saving Fund in non-government pension fund; 3. Insurance Agreement of Life Pension; 4. Pension deposit in bank
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THANK YOU FOR YOUR ATTENTION