Why does a foreigner need a TIN in Ukraine?

An individual tax number (ITN) is essential for any foreigner who plans to stay in Ukraine for a long time, work, run a business, or engage in other activities. Obtaining a TIN makes it possible to officially participate in the country's economic life, pay taxes, and access several public services. This article will examine why a foreigner needs to obtain a TIN, what aspects to pay attention to, and how this will facilitate legal integration into Ukrainian society.

What is a TIN?

A TIN is a unique digital code assigned to individuals and legal entities to record their tax liabilities to the state. This is especially important for foreigners, as the TIN is the key to conducting financial transactions in Ukraine. Without this number, a foreigner will not be able to officially receive a salary, register a business, or even open a bank account.

Why does a foreigner need a TIN?

1. Official Employment

One of the most important reasons a foreigner needs a TIN is to be officially employed in Ukraine. Without a TIN, an employer cannot hire a foreigner in accordance with Ukrainian law. In addition, a TIN must pay taxes withheld from employees' income.

Example: John, a British citizen, came to work for an IT company in Kyiv. To receive a salary and work legally, he must obtain a TIN, allowing his employer to pay taxes on his income.

2. Registration of business and entrepreneurial activity

Foreigners who intend to start a business or conduct entrepreneurial activity in Ukraine also need a TIN. Without it, it is impossible to register a company or become a private entrepreneur, which limits foreigners' ability to invest in the Ukrainian economy and develop their businesses.

Interesting fact: According to the Ministry of Economy of Ukraine, in 2023, the number of foreign investors in small and medium-sized businesses increased by 15%, and most obtained a TIN as the first step towards starting a business.

3. Opening a bank account

To open a bank account with a Ukrainian bank, a foreigner needs a TIN. This number is used to identify the client in financial institutions and ensures proper accounting of their financial transactions. Without a TIN, a foreigner will not be able to make money transfers, receive a salary, or pay taxes through banking services.

Example: Maria, an Italian citizen, plans to invest in real estate in Ukraine. To do this, she needs to open a bank account that will allow her to conduct transactions for the purchase and sale of property. To open an account, Maria needs to obtain a TIN.

4. Registration of property and real estate

Foreigners planning to purchase real estate in Ukraine also need to obtain a TIN. Without this number, it is impossible to register property rights to housing or other types of real estate and to carry out legal actions related to property.

5. Registration of inheritance:

If a foreigner is entitled to inheritance in Ukraine, TIN registration is mandatory for the inherited property to be registered correctly. With a TIN, notarial actions to formalize the inheritance become possible.

How to obtain a TIN for foreigners?

Obtaining a TIN for foreigners is simple and takes little time. To do this, you need to contact the State Tax Service of Ukraine or use the services of law firms that specialize in helping to obtain tax numbers. One such company is STATUS KO, which offers professional support in obtaining a TIN for foreigners.

Conclusion.

Obtaining an individual tax number (TIN) is crucial for foreigners' legal activity in Ukraine. With a TIN, it is possible to officially work, run a business, conduct financial transactions, or own real estate. Suppose you plan a long-term stay in Ukraine or intend to work or invest. In that case, a TIN will be a necessary step towards your legal integration into Ukrainian society.