A seafarer wants to take out a mortgage, and the bank asks for proof of income. The salary for three contracts sits on his card, but the tax office has no record of it. Seafarer taxes in Ukraine become an issue exactly at such moments, although it is better to sort them out earlier.
Personal income tax for seafarers and the military levy
If you are a tax resident of Ukraine, that is, you live here permanently, you pay tax on all income, including a salary from a foreign shipowner. There is currently no special exemption for seafarers.
The rates are as follows:
| Tax | Rate | On which income |
|---|---|---|
| Personal income tax (PIT) | 18% | all income from abroad |
| Military levy | 5% | income accrued from 1 January 2025 |
| Military levy | 1.5% | income before 2025 |
Income in foreign currency is converted into hryvnias at the National Bank of Ukraine rate on the date it is accrued or received.
A seafarer’s tax return: deadlines and procedure
A foreign employer does not withhold Ukrainian taxes, so declaring seafarers’ income is up to the seafarers themselves. How a seafarer pays taxes:
- the return for the previous year is filed by 1 May;
- the tax is paid by 1 August;
- the return can be filed online in the Electronic Taxpayer’s Account.
If Ukraine has a double taxation avoidance treaty with the country where you have already paid tax, that tax can be credited. For this you need a certificate from the foreign tax authority.
Want to understand your money better?
Together with the Lviv Business School of UCU, Stella Maris runs a free online financial awareness course for seafarers and their families: budgeting, savings, debts, investing.
Legalising a seafarer’s earnings and the income certificate
The legality of income from abroad is confirmed by documents. Keep your contract, payslips for every month and statements from the bank where your salary was paid. These make up the seafarer’s income certificate that banks, embassies and notaries ask for.
Declared income can then be used for a loan or to buy a home. Undeclared income becomes a risk: Ukraine has joined the automatic exchange of bank account information, and the tax authority increasingly sees foreign receipts.
FOP for seafarers: why it is not a workaround
Sometimes people advise registering a FOP (sole proprietorship) and paying the single tax. But a salary under an employment contract with a shipowner is the income of an employee, not entrepreneurial activity. A FOP for seafarers makes sense only if you genuinely provide services as an entrepreneur, for example consulting or teaching.
Where the limit is: when you need to consult a lawyer
This article explains the general rules. If you have lived abroad for a long time, work for a company from an offshore jurisdiction or have undeclared income over several years, you need a consultation with a lawyer or a tax adviser for seafarers. Stella Maris does not provide such services, but can help you get your finances in order.
Seafarer taxes in Ukraine come down to 18% personal income tax and 5% military levy on a foreign salary, a return by 1 May and payment by 1 August. Keep documents proving your income from your very first contract.
Finances after a voyage — without stress
The Stella Maris financial awareness course will help you plan a budget between contracts. The training is free and takes place online.
Read also: Legal Help for Seafarers: What to Do If Your Wages Are Delayed — how to act if the shipowner doesn’t pay.
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