DLF Attorneys-at-Law has outlined the key legal and tax pitfalls for foreign companies operating in Ukraine through local contractors, warning that Ukrainian authorities assess the actual nature of cooperation rather than the formal contract title. Among the risks DLF identifies are requalification of contractor relationships as employment, inadvertent creation of a non-resident permanent establishment, cross-border currency restrictions under martial law, additional tax assessments, and jurisdictional gaps that can undermine a company’s ability to resolve disputes effectively. The firm recommends aligning contractual terms with real-world conduct, limiting contractor authority over commercial decisions, and preparing banking documentation in advance to avoid payment delays.
