Meeting with representatives of the Independent Association of Banks of Ukraine on administration of controlled foreign companies was held at the State Tax Service

Application of legislative norms regarding taxation of controlled foreign companies was explained today by representatives of the State Tax Service of Ukraine during meeting with the Independent Association of Banks of Ukraine.

It was, in particular, about submission of Notification of discovery of the fact that an individual (legal entity) – resident of Ukraine owns a share in the foreign legal entity (hereinafter – Notification). Submission of such Notification is provided for by provisions of the Tax Code of Ukraine, according to which any controlling body, state authority, bank or financial institution, upon discovering such fact, must send a Notification regarding this to the central executive body that implements state tax policy. Notification is sent by the electronic communication means not later than five working days after discovery of such facts.

During the meeting, representatives of the State Tax Service provided answers to the most common questions from participants regarding submission of these Notifications. In particular, specifics of filling in the Notification form, correctness of data reflection in its individual lines were explained. Practical recommendations on specifying mandatory information compiling it were also provided.

In total, almost 4200 such Notifications have already been received by the State Tax Service. Submitted information is comprehensively analyzed and used in further work of the State Tax Service to develop methodology for tax administration of controlled foreign companies. Representatives of the State Tax Service called on payers to submit suggestions for further improvement of the recommended Notification form. This is a new tool and together we have to make it convenient and effective – assured representatives of the State Tax Service.