Is it OK to pay to my another commany in Ukraine as a contractor?

In addition to the company in Estonia I’ve got another company in Ukraine in the form of Sole proprietorship. So I am just curious if it is ok to pay this company as a contractor from my Estonian company, according to tax and other legal rules in Estonia. Thanks :slight_smile:

Hi Orest,

I’m in a similar situation and consulted Xolo’s team, who recommended reaching out to the local tax authority. Unfortunately, locals response wasn’t definitive, hinting at a “try and see” approach, which isn’t very reassuring.

I’m also concerned about the Estonian authorities. From my research and some non-official legal advice, it seems Estonian tax officials often view such contracts as lacking business value for Estonian entities and may suspect them of being a tax avoidance scheme. They tend to evaluate these cases individually, so it’s crucial to be prepared to demonstrate the tangible value delivered to the Estonian company.
Would be great to hear real life experiences.

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