Financial agents, attention!

Procedure for completing and submitting report on accountable accounts by accountable financial institutions according to the Common Reporting Standard CRS entered into force

Order of the Ministry of Finance of Ukraine № 516 as of 25.09.2023 "On approval of Procedure for completing and submitting report on accountable accounts by financial agents according to the multilateral agreement of competent authorities on the automatic exchange of information on financial accounts" (hereinafter – Procedure, Order of the Ministry of Finance № 516) entered into force on 17.11.2023.

With entry into force of changes to tax legislation regarding implementation of the CRS Common Reporting Standard in Ukraine, financial agents who are accountable financial institutions for purposes of the CRS Multilateral Agreement and the CRS Common Reporting Standard are obliged to take due diligence measures in order to identify accountable accounts and every year, by July 1 to submit report on accountable accounts (hereinafter – Report) to the State Tax Service of Ukraine.

Order establishes that the first Report for reporting period beginning on July 1, 2023 and ending on December 31, 2023 (the first reporting period) shall be submitted by accountable financial institutions by July 1, 2024. In the future, previous calendar year will be considered the reporting period.

Procedure establishes requirements for the form and format of Report and determines procedure for its completion and submission to the State Tax Service for subsequent transfer of information to the competent authorities of accountable jurisdictions according to the CRS Multilateral Agreement.

Report provides information on all accountable accounts for the reporting period. If no financial accounts are held by the reporting financial institutions in the reporting year, or if, after applying due diligence procedures, the reporting financial institutions do not identify any financial accounts that are reporting for purposes of the CRS Multilateral Agreement, the reporting financial institutions shall submit a “zero” report, in which indicates absence of accountable accounts in the corresponding year.

Report is generated using the XML schema "CRS XML Schema (v2.0)", which was developed by the Organization for Economic Cooperation and Development and is used in process of automatic exchange of information between competent authorities. The XML schema of Report will be published on web portal of the State Tax Service.

Procedure defines requirements for filling out elements of Report, description of guides and rules for filling out and submitting the corrected Report, which are established on the basis of requirements of the Guide for tax authorities on the XML schema of the Common Reporting Standard, which is available on the OECD website at the link. 

State Tax Service of Ukraine casually draws attention of accountable financial institutions to the obligation of all accountable financial institutions to be registered at the State Tax Service. At the same time, organizations that had status of accountable financial institutions as of June 30, 2023 are required to register at the State Tax Service by December 31, 2023. If organization did not have status of accountable financial institution as of June 30, 2023 or was created (registered) starting from July 1, 2023 or later, it submits application for registration at the State Tax Service as accountable financial institution within 60 calendar days after establishment its status as accountable financial institutions. More at the link. 

Reminder! Text of the CRS Common Reporting Standard in Ukrainian and English, joint information letter of the State Tax Service and the Ministry of Finance on practical issues of interpretation of certain terms of the CRS Common Reporting Standard, as well as other clarifications are posted on the official website of the Ministry of Finance and web portal of the State Tax Service.      

Implementation of the international standard of automatic exchange of information on financial accounts into Ukrainian legislation and practice is carried out with support of the European Union Programme for the Support of Public Finance Management in Ukraine (EU4PFM).