Implementation of international standards is an international obligation that Ukraine has undertaken, including for European integration.a
Back in August 2022, the State Tax Service of Ukraine joined the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information in accordance with the CRS (Common Reporting Standard).
Thereby, the Parliament recently passed the Law which amends the Tax Code of Ukraine in order to implement the international standard of automatic exchange of financial account information.
Thus, Ukraine will provide reports on foreigners and foreign companies operating on its territory, and in return will have information on Ukrainians and Ukrainian companies operating abroad, including full name, address, jurisdiction of residence, individual identification number, account number, account balance, etc.
As noted on the website of the Ministry of Finance of Ukraine, the systematic analysis of information received by the State Tax Service of Ukraine from foreign competent authorities is an important tool for monitoring the promptness
and completeness of the declaration of assets and incomes, for identifying undeclared assets and incomes, as well as for fighting against tax evasion by residents of Ukraine.
With which countries there will be an automatic exchange of information and reports?
The list of accountable jurisdictions will be published on the official website of the Ministry of Finance of Ukraine (these will be the jurisdictions that agree to exchange information with Ukraine).
When will the accounts be verified?
- from July 1, 2023, all financial institutions will be required to start using CRS;
- until December 31, 2023, the accounts of individuals with a balance of more than USD 1 million as of June 30, 2023 will be checked;
- until December 31, 2024, the accounts of individuals with a balance not exceeding USD 1 million as of June 30, 2023 will be checked;
For what period the exchange of information and reports will take place?
The first reporting period is from July 1, 2023 to December 31, 2023, and the first exchange of information by Ukraine is planned for 2024.
As of today, the Law has already been signed by the President. However, it is currently not known for sure how it will act in practice (since a number of by-laws still need to be adopted). If additional information appears, we will promptly inform you.
