# Taxes, declaring income and wartime risks > Tax on investment income, declaring foreign income, currency rules under martial law, and documents and access for your family. - Course: [Long-Term Investing: Index Funds, Risk and Your Own Behavior](https://productovi.com/courses/long-term-investing.md) - Module: Launching for Ukraine, and the long run - Lesson 31/32, ~25 min - Source: https://productovi.com/courses/long-term-investing/taxes-and-war-risks ## What the tax takes **Alex Tutor:** Late October at Zapas, two weeks to launch. As the PM you still owe the help centre two pages: taxes, and what happens to a user's money in hard times. **Ethan:** Can't we just write "Zapas takes care of taxes"? **Grace:** No. For income from abroad, a Ukrainian tax resident declares and pays it themselves. What we can do is explain the rules clearly, with the date: everything we have is as of October 2027. **Grace:** As of then: profit from selling funds or shares was taxed at 18% income tax plus a 5% military levy, 23% in total. Dividends from foreign funds: 9% plus 5%, 14%. Government bonds: nothing. **Tax on 1,000 UAH of income for a Ukrainian tax resident, as of October 2027** | Type of income | Tax, UAH | | --- | --- | | Profit on selling a fund | 230 | | Deposit interest | 230 | | Foreign fund dividends | 140 | | Government bond income | 0 | *Income tax plus 5% military levy. Check the current rules.* > **Exercise:** A Ukrainian tax resident bought fund units for **100,000 UAH** and sold them for **130,000 UAH** in the same year (both amounts in hryvnias). As of October 2027, investment profit was taxed at **18% + 5%**. How much tax is due, in UAH? **Sofia:** What if one fund made money and another lost it in the same year? **Grace:** Then they net out. All investment operations of the calendar year are added up, gains minus losses, and only a positive result is taxed. > **Exercise:** In one calendar year a user sells fund A with a profit of **30,000 UAH** and fund B with a loss of **10,000 UAH**. As of October 2027, gains and losses of the year net out and the result is taxed at **23%**. How much tax is due, in UAH? **Ethan:** And the dividends our users get? Those are small. **Grace:** Small, but every year, and declared every year. That's one reason the share class matters for Ukrainians. > **Exercise:** A distributing foreign fund pays a Ukrainian tax resident **2,000 UAH** of dividends in a year. As of October 2027, foreign dividends were taxed at **9% + 5%**. How much tax is due, in UAH? ## Declaring it **Ethan:** And when do users have to do all this? **Grace:** Once a year. Income from a foreign broker goes into the annual declaration, filed by 1 May of the next year; the tax is paid by 1 August. Amounts in hryvnias at the National Bank's rate. ![One tax year: gains and losses net out over the year, file the declaration by 1 May, pay by 1 August; profit 23%, foreign dividends 14%, government bonds 0% (as of October 2027).](https://productovi.com/courses/long-term-investing/diagrams/m8-l3-tax-year.png) **Sofia:** And if someone bought through a Ukrainian licensed firm instead? **Grace:** Then ask the firm what it reports and withholds; the rules for local firms can differ. Either way, keep every confirmation. Without the purchase cost on paper, the profit can't be shown correctly. > **Exercise:** Put a Ukrainian tax resident's steps for one year of foreign investment income in order (rules as of October 2027). > **Exercise:** **True or false:** choosing an accumulating fund means a Ukrainian tax resident never pays Ukrainian tax on it. ## Wartime risks **Sofia:** Then the harder page: what happens to a user's money if things go badly? **Grace:** Three kinds of risk. The rules can change: currency controls tightened in 2022 and eased in 2026. The chain of firms can fail. And the person can be gone, with a family that doesn't know what exists. **Grace:** For the first two: divide the long-term part between currencies and, where the rules allow, countries, and know who holds what. For the third: a short note for the family. Our personal finance course has a whole lesson on it. **Ethan:** Isn't this too dark for a launch help page? **Grace:** For a Ukrainian investing app in wartime, leaving it out would be the dark choice. People plan for decades here; they know what can happen. We help them make sure the money still reaches their family. **Sofia:** So the help page links to that lesson and gives a short template? **Grace:** Yes. Four lines: what, where, which firm, where the papers are. > **Exercise:** What should a user's "if something happens to me" note for the family include about their investments? Select all that apply. ## Your turn: the tax page **Ethan:** All right, no "we take care of taxes". What do we actually write? > **Exercise:** Which opening line should Zapas's tax help page use? **Alex Tutor:** Now write the page's main paragraph: rates, netting, the declaration, what isn't settled, and the date. > **Exercise:** Write the main paragraph (4–6 sentences) of Zapas's help page "Taxes on your investments" for Ukrainian tax residents: rates, netting within the year, who declares and when, what isn't settled, and the date of the rules. > **Key ideas** > > - As of October 2027: investment profit 23% (18% + 5% levy), foreign fund dividends 14% (9% + 5%), deposit interest 23%, government bonds 0%. Check the current rules. > - Gains and losses net out within the calendar year; tax is on the profit, not the sale amount. > - Foreign income is declared by the investor: file by 1 May of the next year, pay by 1 August, at the National Bank's rate. > - Not settled: whether accumulating funds defer tax, and how the devaluation part of a hryvnia gain is taxed. Ask a tax adviser. > - Wartime risks: rules change fast, know the custody chain, divide the long-term part between currencies, and leave the family a note on what exists and where. > **Educational, not advice** > > This lesson explains general rules as of October 2027; it isn't tax or legal advice and doesn't tell you what to buy. Rules change, especially under martial law: check the current rules or ask a tax adviser or licensed professional. Investments can fall, and you can get back less than you put in. **Alex Tutor:** Next time, the last one: launch week. The launch memo, and your own one-page plan. - Previous lesson: [Buying a global fund from Ukraine: domicile, broker, protection, FX](https://productovi.com/courses/long-term-investing/buying-from-ukraine.md) - Next lesson: [Capstone: the launch memo and your own one-page plan](https://productovi.com/courses/long-term-investing/capstone-launch-memo.md) --- Productovi Learning. Free, no sign-up needed to read.