Over two years, Ukrainians and Ukrainian businesses submitted information to the Tax Service about more than 4.5 thousand controlled foreign companies (CFCs). This was announced by the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danilo Getmantsev.
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According to him, since the beginning of 2022, a total of 8,873 reports about 4,536 controlled foreign companies have been submitted to the State Tax Service. Of these, 8,449 messages about foreign business came from individuals, 424 from legal entities.
A total of 5,774 controllers of foreign companies are registered, of which 5,626 are individuals.
The most popular for registering foreign companies among Ukrainians are:
- Poland – 25% of all CFCs; UK – 13%; USA – 11%; Cyprus – 9%; Estonia – 7%; other countries – 35%.
Financial institutions and government agencies sent 11,634 reports of facts indicating that a resident owns a share in a foreign legal entity.
Getmantsev recalled that a declaration campaign for 2023 is currently underway, which involves submitting information about CFCs.
“478 reports have already been submitted, the declaration campaign continues. For legal entities-controllers, there are 2 days left, for individuals-controllers the deadline expires until May 1,” he noted.
When to submit a CFC report
The first CFC report for The year 2022 must be submitted together with the tax return for 2023 (before March 1, 2024), and for individuals – with the declaration of the property status of the individual (before May 1, 2024).
In particular, Ukrainians must report:
- every direct or indirect acquisition of a share in a foreign legal entity or the beginning of physical control over a foreign legal entity, which leads to the recognition of such an individual (legal) entity as a controlling person; establishment, creation or acquisition of property rights to a share in the assets, income or profits of an entity without the status of a legal entity; each alienation of a share in a foreign legal entity or termination of actual control over a foreign legal entity, which leads to the loss of recognition of such an individual (legal entity) as a controlling person; liquidation or alienation of property rights to a share in the assets, income or profits of an entity without the status of a legal entity.
In case of violation of this requirement, a fine is provided in the amount of 300 times the subsistence minimum for an able-bodied person, established by law on January 1 of the tax (reporting) year.
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