Starting from 2019, foreign currency circulation within the territory of Ukraine has been significantly liberalized as the Law of Ukraine “On Currency and Currency Transactions” became effective. The Law abolishes a number of irrelevant restrictions, defines legal principles of currency operations, currency regulation and supervision and declares significant liberalization of currency transactions and capital movement.
Among other things, existing restrictions on opening UAH bank accounts for non-residents were abolished.
It has become possible for a non-resident entity to open a UAH bank account in Ukraine to deposit theUAH proceeds received from Ukrainian business entities under the contracts on provision of goods or services.
It has to be noticed that opening of account for non-resident legal entity is only possible upon registration of such non-resident with the local tax authorities. However, such registration does not imply any obligations to pay taxes or submit any tax returns / other tax reportings in Ukraine.
As a separate matter, please note that due to quite recent introduction of the legislative changes, not all Ukrainian banks provide such accounts to non-residents.
Consult your advisors to ascertain that all the requirements are met, and to warrant provision of a UAH account to your business.
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NAZALI TAX & LEGAL |