The tax authorities will begin counting the frequency of border crossings
The State Tax Service and the State Border Guard Service have launched an automated data exchange — violations will be detected more quickly without changes to exit and entry rules
Data on crossing the state border may be used by Ukraine’s tax authorities to determine citizens’ tax residency, Oleksandra Tomashevska, a tax consultant, told the publication RBC‑Ukraine in an interview.
The specialist noted that when a person declares permanent residence abroad but regularly returns to Ukraine, the frequency of such trips may be interpreted as a sign of a closer connection with Ukraine.
According to the expert, the controlling authorities will evaluate not only the facts of entries and exits but a wider range of criteria: having housing in Ukraine, the family’s place of residence, the country where the person works, and sources of income.
“If the family lives together with the person abroad, that is a strong argument in favor of the center of their vital interests being located there. Conversely, work or business in Ukraine may indicate otherwise,” — Oleksandra Tomashevska said.
She explained that one way to weaken arguments about ties to Ukraine may be deregistering at the place of residence; however, such a decision has noticeable consequences: it requires informing banks and affects a number of practical aspects of everyday life.
Tomashevska also dismissed the notion of a fully automatic exchange of tax information between countries: if a person permanently lives and works abroad together with their family, typically that state recognizes them as a tax resident, and in such a case the data should not be automatically transferred to Ukraine.
The expert advised to rely primarily on the provisions of law rather than on individual public comments or social media posts, since it is the law that establishes the priority criteria for determining tax residency.
At the same time, the State Tax Service and the State Border Guard Service reported the launch of an automated information exchange, stressing that this does not change the rules for crossing the border but helps to more effectively detect potential tax violations.
