The ArtesLex team has provided comprehensive legal support to an international enterprise, part of a major multinational group, regarding the engagement of foreign specialists to work in Ukraine. The project involved a detailed analysis of the legal and tax aspects of agreements under which personnel from foreign affiliated structures are seconded to perform tasks for the benefit of the Ukrainian business.
The client’s objective was to develop a cooperation model that would allow for the effective utilization of the group’s international human resources expertise while avoiding any claims from state authorities. Our lawyers prepared a detailed legal opinion and developed an optimal form of a framework personnel provision agreement, taking into account the specifics of the Ukrainian market and international business standards.
During the consultation, particular attention was paid to preventing the risk of creating a so-called “permanent establishment” of a foreign company in Ukraine. We proposed contractual formulations that clearly distinguish the provision of personnel services from activities that could lead to undesirable tax consequences for the foreign party. The issue of Value Added Tax (VAT) was also analyzed, as the Ukrainian enterprise acts as the party responsible for the proper taxation of these transactions upon receiving such services.
A critical stage of the work involved distinguishing civil-law relations from labor relations. To protect the client’s interests, our specialists implemented safeguards into the documents to preclude the interpretation of the engaged specialists’ work as a direct employment relationship with the Ukrainian company. This approach helps avoid additional administrative burdens and risks associated with labor legislation.
Furthermore, we took into account requirements regarding transfer pricing and the principle of economic feasibility. The client received practical recommendations on how to properly substantiate the “business purpose” of such transactions, ensuring that the costs of engaging foreign specialists are fully justified from a tax control perspective. Advice was also provided on compliance with internal staffing levels and working condition requirements, which are mandatory when engaging personnel from other structures.
Through the involvement of ArtesLex experts, the client obtained a transparent and secure framework for interaction within the multinational group. This allowed the client to focus on achieving business goals, confident that all processes for engaging international expertise are professionally structured and protected against legal risks.
March 9, 2026
Comments are closed for this post.