Withholding tax on interest in Ukraine: What non-resident companies need to know

Withholding tax on interest in Ukraine applies when a Ukrainian company pays interest to a foreign entity. The legislation sets the applicable tax rates, defines when exemptions or treaty benefits may apply and outlines any reporting steps that must be followed.

If your company receives interest from Ukrainian sources, understanding these rules is essential to prevent unnecessary tax payments and avoid compliance issues.

This article outlines the key points non-resident companies should know about withholding tax on interest in Ukraine.

Who should pay attention?

Withholding tax on interest in Ukraine is especially important for non-resident companies earning interest from Ukrainian payers. Whether you’re financing a local company or involved in structured cross-border lending, understanding the tax rules is key to avoiding costly mistakes.

This topic is particularly relevant for:

If your business fits any of these categories, it’s important to review how withholding tax on interest is handled to ensure compliance and efficiency.

Key overview of withholding tax on interest in Ukraine

The maximum withholding tax rate of 15% is applicable on interest paid to a foreign entity residing in a jurisdiction with which a double tax treaty was not concluded or in case the taxpayer fails to provide confirmation of the tax residence of the interest recipient company.

Specific reporting obligations in relation to the interest payment made to non-resident entities

Why it matters: More than just a tax rate in Ukraine

Withholding tax on interest in Ukraine can vary depending on the structure of the loan, the tax residency of the recipient and whether treaty relief or exemptions apply.

Without a clear understanding of the rules, non-resident companies risk overpaying tax, missing deadlines or facing penalties. Knowing how the Ukrainian system works helps you manage your financing effectively and stay compliant.

“The key to smooth and tax-efficient remittance of interest from Ukraine lies in early and thorough planning. This includes the correct choice of jurisdiction, preparation of all required documentation, its timely verification and submission. These are the important steps to be taken well before the loan is granted. Companies that treat tax planning as part of the deal structuring – not an afterthought – avoid costly delays and ensure compliance. It is the secret and the key ingredient for fruitful business activities.” Artem Narodenko | Head of Advisory | Accace Ukraine

Artem Narodenko

Head of Advisory | Accace Ukraine

Get in touch with us

Rely on expert support for withholding tax in Ukraine

At Accace Ukraine, we help non-resident businesses manage withholding tax and other cross-border tax obligations with confidence. Whether you’re structuring interest payments or meeting local reporting requirements, our team is here to guide you.

Our services include:

• Tax advisory: Clear guidance on withholding tax, treaty application and local legislation
• Tax compliance: Support with registrations, filings and communication with Ukrainian tax authorities
• Tax planning: Structuring cross-border transactions to reduce tax risks and ensure efficiency

With strong local expertise and an international mindset, we help your business stay compliant and tax-efficient in Ukraine.p ensure your business remains compliant, tax-efficient and well-prepared for local and international obligations.