Foreign Prisoners of War in Ukraine Will Pay Personal Income Tax and Military Levy

The Cabinet of Ministers of Ukraine has approved a draft law that introduces the obligation to pay personal income tax (PIT) and military levy for foreigners who are in the status of prisoners of war on the territory of Ukraine. This was announced by the government representative in the Verkhovna Rada, Taras Melnychuk.

This is reported by AgroReview

What Changes Does the Draft Law Propose

The proposed changes pertain to the Tax Code of Ukraine. The draft law defines a separate category of taxpayers — prisoners of war who are not residents of Ukraine but hold this status according to the provisions of the Geneva Convention. According to the document, such individuals, while in captivity, are engaged in certain work for which they receive monetary compensation.

All income that prisoners of war earn from work will be subject to taxation on general grounds. The camps for holding prisoners of war, correctional institutions, and pre-trial detention centers of the State Criminal Executive Service of Ukraine will act as tax agents for these individuals, meaning they will calculate their salaries, withhold taxes from them, and submit the corresponding reports on income and taxes paid.

What Is Needed for the Law to Come into Effect

“It is important to emphasize that the Cabinet’s decision is merely the government’s agreement to such provisions of the future law. For the draft law to become law and take effect, it must be approved by the Verkhovna Rada and signed by the president.”

Thus, the legislative innovations regarding the taxation of foreign prisoners of war will only come into effect after all legislative procedures have been completed.