Ukrainians abroad will face new taxation: what will change from 2026
From 2026, Ukrainians living abroad will be subject to a new taxation system that involves an automatic exchange of information about bank accounts (CRS) with over 120 countries. The changes will also affect the military tax, which has increased to 5%, and the declaration of social assistance, which will become mandatory. Undeclared income may result in significant fines, complicating the financial situation of many Ukrainians abroad.
New taxation rules
According to the new rules, the Ukrainian tax service will receive data about citizens' accounts from over 120 countries. This means that the tax office now has access to the foreign accounts of Ukrainians, which may create a dangerous situation for those who work and live outside Ukraine. As expert Irina Polyakova noted,
“This means that the tax office now sees your foreign accounts... And this has created a dangerous trap for those who work and live abroad.”
Regarding the military tax, its rate will be 5%. This deduction rule only applies to income tax and does not extend to the military tax. The expert noted that
“She is required to take 5% from her 'dirty' Polish salary and give it to the Ukrainian budget.”
Declaring social assistance will also become mandatory, which may pose additional challenges for Ukrainians abroad. It is important to note that significant fines will be imposed for undeclared income:
- 25% of the tax amount for the first violation;
- 50% for the second;
- 75% for the third violation.
The declaration must be submitted by May 1, 2026, emphasizing the importance of complying with the new requirements.
The new taxation system, which will take effect in 2026, aims to ensure more effective control over the incomes of Ukrainians abroad and to prevent tax evasion. These changes may significantly impact the financial situation of Ukrainians working outside the country, as they will have to not only adapt to the new rules but also be prepared for potential fines in case of non-compliance. The importance of timely income declaration becomes critical to avoid financial difficulties in the future.