Accounting for foreign representative offices and subsidiaries in Ukraine
We keep the books of foreign companies' representative offices (predstavnytstvo) and subsidiaries in Ukraine: payroll and employee taxes, funding from head office, tax withheld on payments to the parent company. We explain the numbers in English and reply within one business day. Accounting starts from UAH 15,000 a month as part of our accounting services in Ukraine.
Reports your head office can read
Withholding tax on payments abroad
Accountants, lawyers, tax attorney
Tell us how your company is set up
Write where the parent company is registered, what you already have in Ukraine (a representative office or an LLC) and how many people work there. A manager replies within one business day with a price.
Representative office or subsidiary: what it means for accounting
Key differences that cannot be ignored
- Permanent establishment of a non-resident → separate corporate income tax payer in Ukraine
- Subsidiary → full legal entity with standard accounting
- Transfer pricing for a subsidiary → control of transactions with related parties
- Repatriation of income to a non-resident → tax + application of DTT
- Accounting outsourcing for a subsidiary in Ukraine is often more complex due to intra-group transactions
- Accounting services for a foreign representative office in Ukraine are more related to currency control and foreign economic activity
What accounting for a representative office or subsidiary includes
Bookkeeping and tax returns
We record income and expenses and file returns with the tax authority and statistics office on time. For a permanent establishment or an LLC that includes the corporate income tax return, for a VAT payer - tax invoices and VAT returns.
Payroll and employee taxes
Employment contracts, salaries, 18% personal income tax, 5% military levy and 22% ESV, and the monthly payroll tax report. If a foreigner works for you in Ukraine, we check whether they need a work permit: staff of a representative office do not, staff of a subsidiary usually do.
Foreign currency and the bank
Funding from head office, payments to foreign suppliers, exchange differences. We prepare the documents the bank asks for under currency control and financial monitoring.
Payments to non-residents
Dividends, royalties, interest and other Ukrainian-source income of a non-resident are subject to 15% withholding tax. A double tax treaty can lower the rate if you have the recipient's tax residence certificate before payment. We check it in advance.
Transfer pricing
Transactions with the parent become controlled when the company's annual income exceeds UAH 150 million and transactions with one related non-resident exceed UAH 10 million a year. For a permanent establishment, dealings with head office are controlled above UAH 10 million regardless of income. Prices must then be at arm's length, and a controlled transactions report is filed every year.
Numbers for head office
We explain the accounts in English, prepare data for group reporting and answer the group auditors' questions. The format and frequency of reports go into the contract.
What accounting for a representative office costs
Accounting for a representative office
Accounting for a subsidiary (TOV)
Representative office registration
Consultation
- controlled transactions report;
- CFC report for a Ukrainian resident owner.
All prices are on the accounting prices in Ukraine page. If you do not have an office yet, start with registering a representative office in Ukraine. If your subsidiary works as an ordinary LLC with no complex group transactions, see also accounting services for LLCs. Payroll is charged at our payroll services rate.
Fiscal representation in Ukraine: how VAT and taxes work for a non-resident
In many EU countries a foreign company appoints a fiscal representative who registers it for VAT and files returns on its behalf. Ukraine has no such role for VAT: a non-resident cannot appoint a Ukrainian firm to hold its VAT registration. What applies to you depends on what your company actually does in Ukraine.
- electronic services to individuals in Ukraine (apps, subscriptions, cloud services) - the non-resident registers for VAT itself under a simplified procedure and files a quarterly return;
- services to Ukrainian businesses where the place of supply is Ukraine - the Ukrainian customer accounts for 20% VAT under the reverse charge, so you do not register;
- goods imported into Ukraine - the importer pays VAT at customs;
- ongoing operations in Ukraine - through a permanent establishment registered with the tax authority, which can register for VAT, or through a subsidiary (TOV).
Payments from Ukraine to a non-resident are subject to 15% withholding tax unless a double tax treaty gives a lower rate. A separate risk arises when a foreign company is in fact managed from Ukraine, see our article managing a foreign company from Ukraine. We do not act as a fiscal representative, because Ukrainian law has no such role. We help you choose the structure, register it and keep its books.
Who this service is for
A foreign company opening an office
A subsidiary of an international group
Why foreign companies work with us
English and Polish
Accountants, lawyers and a tax attorney
Someone is always available
Almost 20 years in business
How we start
Accounting for a representative office in Ukraine, questions
It depends on what it does. An office that does not trade pays no corporate income tax, but it withholds personal income tax and the military levy and pays ESV for its staff. If it sells or signs contracts for the company, it is a permanent establishment and pays 18% corporate income tax.
Yes, even if it sells nothing: as an employer it pays taxes for its staff and files reports. A permanent establishment must register before it starts operating. Once the office is entered in the state register, the tax authority registers it automatically, and within 10 days the foreign company files its own application to register as a non-resident - we prepare it.
From UAH 15,000 a month for a representative office and from UAH 16,000 for a subsidiary with a small number of transactions. Payroll and HR are charged separately, from UAH 1,500 per employee. We confirm the exact price after a call, once we know how many people and payments there are.
If you plan to sell in Ukraine, sign contracts and earn income here, a subsidiary (TOV) usually fits better. A representative office suits a presence without sales: marketing, quality control, contact with partners. We compare the structures and prices on company registration in Ukraine.
In the EU a fiscal representative is a local firm that handles VAT for a foreign company. Ukrainian law has no such role, so you do not need one. A non-resident selling electronic services to individuals registers for VAT itself under a simplified procedure, VAT on services to Ukrainian businesses, where the place of supply is Ukraine, is paid by the customer, and ongoing operations need a permanent establishment or a subsidiary.
The general rate is 15% on dividends, royalties, interest and other Ukrainian-source income of a non-resident. A double tax treaty can lower the rate if the recipient's tax residence certificate is in hand before payment. We check it before the payment, not after.
Yes. A company or permanent establishment registered as a VAT payer gets an individual tax number used on tax invoices. Registration is mandatory once taxable supplies exceed UAH 1 million in 12 months, and voluntary before that. The standard VAT rate is 20%.
Start accounting outsourcing for a non-resident in Ukraine
Tell us what you have in Ukraine and how many people work there. We will give you a price and a list of what we need to start.