91 package of account reports have already been submitted to the STS, the ultimate beneficial owners of which are the US residents

From 16.08.2021, the State Tax Service of Ukraine collects and transmits account reports, the ultimate beneficial owners of which are the US residents. This is required by Agreement between the Government of Ukraine and Government of the United States of America to improve implementation of tax rules and application of provisions of the U.S. Foreign Account Tax Compliance Act (FATCA).

STS worked out and has a format for transmitting such information agreed with the US partners.

To date, the financial agents (banks, financial institutions, etc.) have already submitted 91 package of reporting data to the STS, of which 59 have already been sent to the US Internal Revenue Service.

These reports contain data on account balances, actual account balance and information on receipts by type.

In 2021, the financial agents report on open accounts for the period from 2014 to 2020 inclusively.

Under agreement between the United States and Ukraine, the STS will perform control function, including conducting an audit in case if the US Internal Revenue Service finds unreliable facts in reports.

STS will continue to take all necessary steps to ensure that such reporting is properly organized and transmitted to the United States.

It will be recalled that the deadline for submitting FATCA reports is 01.09.2021.

Reference.

The Foreign Account Tax Compliance Act, better known by acronym FATCA, was adopted by the United States in 2010 and is aimed at preventing US citizens and residents from evading taxes.

FATCA requires foreign financial institutions to report to the US Internal Revenue Service about movement of funds in the US taxpayers’ accounts. Otherwise, the financial institution can expect a fine from the supervisory authority or even a sanction in the form of 30% deduction from their correspondent accounts from the US banks or even a closure of such accounts.

Communicate with the State Tax Service remotely using the “InfoTAX” service