Ukraine became a member of the Multilateral competent authority agreement on automatic exchange of financial account information

On August 19, 2022, the State Tax Service of Ukraine, as a competent authority of Ukraine, joined the Multilateral competent authority agreement on automatic exchange of financial account information (hereinafter referred to as the CRS Multilateral agreement).

Purpose of joining the State Tax Service to the specified agreement is to join Ukraine to the international system of automatic exchange of information on financial accounts according to the Common reporting standard (CRS), approved by the Council of the Organization for Economic Cooperation and Development (OECD) on July 15, 2014.

Implementation of the CRS is one of the international obligations of Ukraine as member of the OECD Global forum on transparency and information exchange for tax purposes and involves establishing for the State Tax Service as a competent authority of Ukraine an obligation to collect information from financial institutions about financial accounts, owners and/or controlling persons of owners of such accounts who are tax residents of other exchange partner jurisdictions and to exchange the specified information annually with the exchange partner jurisdictions under the CRS Multilateral agreement on an automatic basis.

Accession of the State Tax Service to the CRS Multilateral agreement is a necessary, but not sufficient, condition for the introduction of automatic information exchange, which will become possible only after Ukraine adopts legislation necessary for implementation of the CRS.

To this end, the Ministry of Finance of Ukraine has developed draft Law of Ukraine "On amendments to the Tax Code of Ukraine and some legislative acts of Ukraine regarding the implementation of the international standard of automatic exchange of information on financial accounts", which after completion of all coordination procedures, will be sent to the Cabinet of Ministers of Ukraine for further submission to the Verkhovna Rada of Ukraine.

Reminder! Requirements of the CRS, the CRS Multilateral agreement and the specified draft law can be found at the following links: https://mof.gov.ua/uk/crs-578 and https://tax.gov.ua/en/mass-media/news/609151.html. In case of questions related to the fulfillment of requirements of the CRS, they can be sent to the State Tax Service at crs.info@tax.gov.ua.