A foreigner may carry out any economic activity that is not prohibited by law. At the same time, a foreign national does not have to be present in Ukraine permanently. However, does he have a right to become a single taxpayer in that case? Now we’ll figure it out.
Necessary documents for registration a foreigner as a PE
A foreign national can carry out any economic activity. However, to carry out an economic activity, they need to be legally on the territory of Ukraine, as evidenced by one of the documents:
- Passport that is valid and adequately produced
- Temporary residence permit in Ukraine
- Permanent residence permit.
After producing one of these documents, they can be registered as PE in Ukraine.
PE registration procedure:
There are two ways to register a foreigner as a PE: through the Center for administrative services or the private notary. The registration of a foreigner in Ukraine as PE and of a Ukrainian citizen as PE are similar.
The process is as follows:
- Foreign national must obtain an Individual Tax Identification Number from the tax authorities.
- Further, it is possible to register a PE at the address of temporary residence (e.g., rented apartment or any address to which the foreigner has access). If a foreigner has a residence permit, then at the address of this residence permit.
- Fill in the application for state registration of a PE. In addition, a power of attorney must be submitted to represent interests if an authorized person submits the documents.
Registrar accepts this package of documents, and within 24 hours, the foreigner will be registered as a PE. It is possible to withdraw the extract of state registration of PE from the Registrar after the registration.
The next step is to choose a tax system. In most cases, PE chooses the simplified taxation system. However, it all depends on the type of economic activity in which they will be engaged. Here we a have a question, can a foreigner register as a single taxpayer?
Yes, a foreigner can be registered as a single taxpayer. Until recently, the Tax Code has been interpreted controversial, and it was unclear whether a PE could be a single taxpayer. Since Art. 291.5.7 indicates that non-resident PE and legal entities cannot be single taxpayers. In this case, it is necessary to understand who is considered a resident or non-resident under the tax law. In one individual tax consultation, the State Fiscal Service argues that a sufficient (but not exclusive) condition for determining the location of the center of vital interests of an individual is the place of permanent residence of his family members or his registration as a business entity.
The independent determination of the primary residence on the territory of Ukraine according to the Code or registration as a PE is the valid reason for determining a person as a resident (par. 14.1.213, par. 14.1 of Article 213 of the Code).
We emphasize that registering as PE in Ukraine is not a basis for obtaining a temporary residence permit. However, a PE has a right to carry out economic activity.
