How to Withdraw Money from Payoneer to a Sole Proprietor Account: Tips and Nuances

What Is Payoneer and Why Is It Convenient for Ukrainian Sole Proprietors?

Payoneer is a popular service for receiving international payments. Ukrainian entrepreneurs use it to withdraw dollars, euros, or pounds sterling to their bank accounts and legally accept payments from foreign customers. Moreover, through Payoneer, sole proprietors can issue invoices and pay for advertising or services from partners abroad.

How to Register a Payoneer Account for a Sole Proprietor?

The platform offers two types of accounts: standard (for individuals) and corporate (for entrepreneurs or companies). If you are a freelancer and receive payments through exchanges, a standard account will suit you. If you work directly with companies or corporate clients, it is better to open a business account, as it offers more advantages:

• Access to bank details in foreign currency;

• Invoice generation;

• Transfer of funds to a business account in Ukraine;

• Creation of virtual cards and making payments.

To register and verify your account, you need to fill out a form on the Payoneer website, complete a short survey about your type of activity, and upload the following documents: a photo of your passport (for all account types), a certificate of registration as a sole proprietor (for entrepreneurs), and company registration documents (for legal entities).

Ways to Withdraw Funds from Payoneer in Ukraine

The platform supports direct transfers to most banks. How does it work?

Withdrawal to bank accounts

You need to follow these steps:

1. Log in to your Payoneer account.

2. In your personal account, open the "Withdraw and Transfer" section and select "Withdraw to Bank."

3. Enter your sole proprietorship account details or click "Add New Account" to save them for future transactions.

4. Select the balance currency, enter the amount, and confirm the transaction.

5. If two-factor authentication is enabled, enter the one-time code.

6. After confirmation, you will receive an email with the transfer details and the estimated time of crediting the funds.

Freelancers and individuals can withdraw money from their e-wallets to their personal bank cards. With ObmenAT24, you can conveniently exchange Payoneer (USD) to Visa/MasterCard (UAH).

Commissions and limits

Commissions for a Payoneer sole proprietor account (Ukraine) depend on the currency and transaction amount:

• Receiving a transfer from a platform user — 0% commission (USD/EUR/GBP), no amount restrictions.

• Withdrawal to a bank (same currency) — fixed commission of 1.50 USD/EUR (or 0.5% for >50,000 USD/month). There are no restrictions on the part of Payoneer, but if the amount exceeds 50,000 USD/month, additional checks may be required.

• Withdrawal with conversion — commission up to 3%.

• Cash withdrawal from an ATM using a Payoneer card — commission 3.15 USD + up to 3.5% for conversion. Limits — 2,500 USD/day, 30 transactions/day.

• Annual account fee — $29.95 (if turnover is less than $2,000/year)

• Transfer between Payoneer balances — 0.5%, no restrictions on the amount.

Tax Aspects of Withdrawing Funds

If you work with foreign customers through Payoneer and withdraw money to your sole proprietorship account, it is important to understand how to properly declare this income to avoid tax penalties. Below, we will discuss the key points.

Taxation for sole proprietorships on a single tax

To work with clients abroad, most entrepreneurs choose the third group of the single tax (5% of income + 1% military tax + quarterly social security contributions). By the end of the quarter, you need to transfer funds from Payoneer to your sole proprietorship bank account and convert them into hryvnia. This is the amount that should be recorded in your accounting and declared.

Currency control in banks

Banks in Ukraine conduct currency control of all transactions related to foreign receipts. Simplified control (automatic crediting without documents) is carried out if:

• the total amount of receipts for the month does not exceed UAH 400,000;

• the amount of a single transaction does not exceed UAH 50,000.

For large transfers or regular currency credits, financial institutions may request confirmation of the source of funds. As a rule, Payoneer's partner banks are familiar with the features of the service and do not create unnecessary difficulties if they see a transparent transaction history.

To avoid problems, we recommend:

• indicating in the payment description for which services you receive funds;

• keeping Payoneer statements as proof of transactions;

• declaring all receipts according to the date of receipt.

How to Document Transactions?

You can present an invoice, a contract with a client, or a work completion report, as well as a bank statement from your sole proprietor business account to the tax office or bank. Payoneer recommends keeping all documents in electronic form.

Recommendations for Security and Convenience

To secure your Payoneer account:

1. Enable two-step verification, create a strong password, and avoid using public Wi-Fi.

2. Do not open suspicious emails — phishing remains the most common threat.

3. If you lose your card, block it immediately in the app. Payoneer has 24/7 support, so help is always at hand.

Entrepreneurs are better off withdrawing money once a quarter to save on commissions. If your turnover exceeds $30,000 per month, you can get VIP status with additional bonuses.

Conclusion

Working with foreign customers is an opportunity for Ukrainian sole proprietors to expand their business opportunities. Payoneer helps make this process straightforward. On this platform, you can easily register, undergo verification, receive payments from customers, and safely withdraw money to your account. If you follow the basic rules — enter your details correctly, keep your invoices, and withdraw funds officially — you will have no difficulties.

Looking for a way to exchange dollars from Payoneer to cash in Zhytomyr?
ObmenAT24 will help you complete the transaction quickly and safely. We have branches in all major cities of Ukraine, and you can apply on our website.