Representatives of the State Tax Service of Ukraine in individual tax consultation No. 1066/ІПК/99-00-21-02-02-06 of March 19, 2021 explained how a non-resident should act in case of purchase of “resident” real estate for further lease. More about this below.
First of all, in case of acquisition of immovable property or acquisition of property rights to such property in Ukraine, a non-resident legal entity is obliged to register with the controlling body at the location of immovable property until its acquisition.
In the case of non-resident premises for rent, the rent paid by residents in favor of such non-resident is the income of the non-resident with the source of his origin from Ukraine.
Since the lease of premises by a non-resident is an economic activity of such a non-resident, as a result of which the non-resident receives income from such services in Ukraine, the non-resident must establish a permanent representative office and register with the supervisory authority at the location of the permanent representative office as a payer of icome tax.
But whether a non-resident can pay for the purchased real estate from the foreign account directly to the current account of the resident, the tax authorities advised to contact the National Bank.
It should be reminded that inspections to establish signs of non-resident economic activity on the territory of Ukraine without registration will be carried out in accordance with Order of the Ministry of Finance No. 744 of December 15, 2020.
Inspection of the activities of a non-resident without registration with the controlling body is carried out in accordance with the provisions of section 8 chapter II of the Tax Code of Ukraine (hereinafter – the Tax Code), taking into account the features specified in subitem 14.1.193, item 64.5, provisions of the current international agreements of Ukraine which regulate questions of the taxation, and the bases of its carrying out are established by subitem 78.1.22 if the Tax Code.
The STSU will use both information obtained from the reports of other payers and other public information to conduct inspections.
The STSU plans to start inspections of non-residents subject to registration on July 1, 2021.
