Nowadays, transfers to personal bank cards have become a common part of life for Ukrainians. From splitting bills with friends to paying for goods and services—cashless payments are becoming increasingly common. This raises the question: can regular transfers lead to fines from tax authorities? The publication “Glavkom,” citing the Tax Code of Ukraine, explains this situation.
What the law says
Under Ukrainian law, there is no automatic tax simply for the fact that funds are credited to a card. The Tax Code of Ukraine clearly distinguishes technical transactions from the actual income of individuals. If you sent money to a relative or repaid a debt, this is not considered income and is not taxed.
Article 165 of the Tax Code contains a list of funds that are not included in taxable income:
- Any types of state social assistance, subsidies, and compensation;
- Cash payments to persons with disabilities and assistance for children with disabilities;
- Pregnancy and childbirth benefits;
- Other targeted payments and insurance benefits received from the budget or compulsory state social insurance funds.
When problems may arise
Real risks arise when non-cash deposits to a card show signs of systematic undeclared income. According to Articles 14.1.54 and 163 of the Tax Code of Ukraine, the object of taxation is any total monthly or annual income received in Ukraine or abroad.
