Ukraine: Some Foreign Employees Exempt From Social Security Tax

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By Sergei Blagov

May 27—Otherwise mandatory social insurance requirements do not apply to foreign nationals employed in Ukraine by representative offices of foreign businesses, according to guidelines issued by the State Fiscal Service of Ukraine (SFS) May 24 (Letter No. 8520/6/99-99-17-03-03-15).

Article 253 of the Ukrainian Labor Code sets forth mandatory social insurance requirements, and Subsection 10, Section 1, Article 1 of Ukrainian Law No. 2464-VI stipulates that social levies are paid by employers. While Section 1, Article 4 of Law No. 2464-VI requires representative offices of foreign businesses to pay mandatory social levies in connection with employment of Ukrainian nationals, Article 253 of the Ukrainian Labor Code exempts foreign nationals employed by representative offices of foreign businesses from social insurance requirements. Employers of these foreign employees are therefore not required to pay mandatory social levies

To contact the reporter on this story: Sergei Blagov in Moscow at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

For More Information

The text of Letter No. 8520/6/99-99-17-03-03-15 is available in Ukrainian here.

For more information on Ukrainian HR law and regulation, see the Ukraine primer.