Nuances of filling out and submitting the first report on controlled foreign companies were discussed at a panel discussion

Specialists of the State tax Service participated in a panel discussion at which they considered procedure for compiling and submitting reports on controlled foreign companies.

Introduction of this report is important element of the international taxation direction. Its analysis will allow state to obtain additional information about activity of foreign companies, controlling persons of which are residents of Ukraine and to highlight objects that require more attention from the tax authorities.

Report on controlled operations is submitted for the first time this year, so it raises a significant number of questions from taxpayers. Therefore, specialists of the Transfer Pricing Department started event with a detailed explanation of how to submit report efficiently and quickly, and also demonstrated step-by-step how to fill out its individual parts.

Discussed with consultants regarding specific steps companies need to take to report and complexities that may arise during the process.

Cases in which submission of report is obligatory, grounds for exemption from taxation and possible consequences of incorrectly filling out the report or not submitting it have been outlined.

Speakers paid special attention to transitional provisions of the Tax Code of Ukraine, in particular, to the possibility of submitting report for 2022 in both 2023 and 2024 (for two periods together).

Taxpayers also had opportunity to join discussion and get answers to specific practical questions that they had already encountered during the preparation of report.

In turn, thanks to analysis of such questions, the State tax Service will continue to work on simplifying and improving reporting procedure.