TOP financial questions from freelancers from UpWork

What worries freelancers?

We recently had a little chat with our clients, partners, and just friends who have been doing freelancing or are still doing freelancing. And we found an interesting thing – most of them care about the same simple yet “asterisked” questions.

Let’s take a look at them and try to provide a short but informative answer 😉

Are funds received via Payoneer taxed in Ukraine and Poland?

If you receive income from entrepreneurial activity or provision of services, this income is recognized as “foreign income.”

I receive funds on Payoneer and withdraw them to my bank card. Is it legal?

Yes, if you declare it, it is legal.

Do I have to pay taxes if I receive income from work directly to my card in Ukraine?

Yes, if you receive payment from business activities or services, it is recognized as “foreign income” by the Tax Code of Ukraine and is subject to taxation.

How do I legally formalize my business and withdraw money legally?

It depends on whether you work as a freelancer or an agency. In Ukraine, the subjects of entrepreneurial activity is Sole Proprietorship / in Poland JDG (Jednoosobowa działalność gospodarcza) and LLC (limited liability company)/Poland z o.o. (Spółka z ograniczoną odpowidzielanością). Which form to choose depends on each case individually.

I am a Sole Proprietorship, but I receive funds from Payoneer. How do I do this in accounting?

Funds should be deposited to your foreign currency bank account in a Ukrainian or Polish bank, they should be declared, and tax should be paid on them. It is crucial to have a contract and invoice as documentation.

I own an LLC. Can I accept money from Payoneer?

Yes, you can. But there are nuances:)

I have a team of freelancers like me. How do I formalize us so that it was all within the legal?

If you work as an agency, it makes sense to register a company and register freelancers either as employees or subcontractors.

Check our article about freelancing 

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