How to pay a contractor in Ukraine
A foreign company can hire a person in Ukraine as an independent contractor: no local entity and no payroll on your side. The person registers at home and, under FOP group 3, pays 10.2% of a $1,000 invoice in tax.
- Agree the work and sign a contractor agreement. Scope, monthly fee, currency, notice, confidentiality and who owns the work. The person sets their own working methods and uses their own equipment, which are signs of contractor status; the full test depends on local law and on how the work is actually done.
- Check how the person is registered in Ukraine. Group 3 has no restriction on the type of client, so a foreign company can pay a group 3 FOP; the client pays the invoice gross and the FOP pays the single tax, the levy and ЄСВ.1234
- Receive a monthly invoice. In USD or EUR. At the 2026-11-12 rate5 a $1,000 invoice is UAH 45,322; the person converts on their side and nothing is withheld on yours.
- Pay it. Through a contractor platform that also keeps the agreement and invoices (Remote from $29, Deel from $49 a month)67, or by bank transfer, for example Wise from 0.23% on major currencies8 (check the price of the route to UAH).
- Keep the records. The signed agreement, invoices and payment receipts; a US company also keeps the person's Form W-8BEN, which records their foreign status.
Ways to pay a contractor in Ukraine
| Way to pay | Price | Per |
|---|---|---|
| Remote, Contractor Management6 | from $29 | per contractor per month |
| Remote, Contractor Management Plus6 | from $99 | per contractor per month |
| Remote, Contractor of Record6 | from $325 | per contractor per month |
| Deel, Contractors7 | from $49 | per contractor per month |
| Deel, Contractor of Record7 | from $325 | per contractor per month |
| Oyster, Global Contractors9 | from $29 | per contractor per month |
| Wise, International transfer8 | from 0.23% | of the amount sent, on major currencies; check the route to UAH |
What the contractor pays in Ukraine
| Invoice a month | FOP, single tax group 3 (non-VAT payer) |
|---|---|
| $500 (UAH 22,661) | $72 (14.4%) |
| $1,000 (UAH 45,322) | $102 (10.2%) |
| $1,500 (UAH 67,983) | $132 (8.8%) |
| $2,500 (UAH 113,306) | $192 (7.7%) |
Under FOP group 3 the share that goes to tax falls as the invoice grows, because part of it is fixed: 14.4% of a $500 invoice, 7.7% of $2,500. For scale, the average wage in Ukraine was UAH 31,892 a month in August 2026 (about $704)10.
The regimes, in the sources' words
- FOP, single tax group 3 (non-VAT payer)1234. Single tax 5% of income for a non-VAT payer (3% for a VAT payer). Military levy 1% of actual income for group 3 since 1 January 2025. ЄСВ for oneself at least UAH 1,902.34 a month in 2026 (22% of the UAH 8,647 minimum wage). Income limit 1,167 minimum wages: UAH 10,091,049 for 2026.
Limits to watch
- $18,554 a month (UAH 10,091,049 a year): the group 3 income limit.
Questions
How do I pay a contractor in Ukraine?
Sign a contractor agreement, receive a monthly invoice in USD or EUR and pay it through a contractor platform or a bank transfer. The person pays tax in Ukraine under FOP, single tax group 3 (non-VAT payer): 10.2% of a $1,000 invoice.
Do I withhold tax for a Ukrainian contractor?
A US company paying a non-US person for work done outside the US does not withhold US tax; it keeps Form W-8BEN on file and pays the invoice gross, and the contractor declares and pays in Ukraine. Other countries' rules differ.
Not tax or legal advice: rates depend on the person’s registration and activity. Corrections: hello@silkstaff.com.
Sources
10 sources, with links
- Податковий кодекс України (ст. 167.1, 291.4, 293.3; розділ XX, підрозділ 10, п. 16-1): zakon.rada.gov.ua
- Закон України «Про збір та облік єдиного внеску на загальнообов'язкове державне соціальне страхування», ст. 7-9: zakon.rada.gov.ua
- Закон України «Про Державний бюджет України на 2026 рік» № 4695-IX (мінімальна зарплата 8 647 грн з 01.01.2026): zakon.rada.gov.ua
- Дебет-Кредит: в яких розмірах буде сплачувати ФОП-єдинник 3 групи податки у 2026 році (за даними ГУ ДПС у Київській області): news.dtkt.ua
- National Bank of Ukraine, official exchange rate 2026-11-12: bank.gov.ua
- Remote pricing: remote.com
- Deel pricing: deel.com
- Wise Business pricing (US) (board/facts.py WISE): wise.com
- Oyster pricing: oysterhr.com
- State Statistics Service of Ukraine, average monthly wage of staff employees, August 2026: lv.ukrstat.gov.ua
How these pages are built: methodology and data sources. Last updated 2026-11-12.