Deadline for submitting full Report on controlled foreign companies is coming up

To the attention of controllers of controlled foreign companies, December 31, 2023 is a deadline for submitting full Report on controlled foreign companies for the reporting (tax) year 2022 according to Sub-paragraph 39².5.4 Paragraph 39².5 Article 39² of the Tax Code of Ukraine (hereinafter – Code).

Controlling persons submitted 389 reports on controlled foreign companies in the abbreviated form as of 01.12.2023, of which only 15% submitted full Reports on controlled foreign companies.

Each controller is required to submit annual report on controlled foreign companies. If controller has several controlled foreign companies, then report is submitted separately for each controlled foreign company.

Duly certified copies of financial reporting of controlled foreign companies confirming amount of profit of controlled foreign companies for the reporting (tax) year must be attached to the Report.

Form of Report on controlled foreign companies was approved by Order of the Ministry of Finance of Ukraine № 254 as of 25.08.2022.

Electronic forms of documents are posted on web portal of the State Tax Service in section "Electronic reporting/For taxpayers on electronic reporting/Information and analytical support/Register of electronic forms of tax documents" (forms J0108701 and F0108701).

At the same time, Paragraph 120.7 Article 120 of the Code, in particular, provides for the following financial sanctions:

- non-submission by the controlling person of report on controlled foreign companies entails imposition of a fine in the amount of 100 times the subsistence minimum for an able-bodied person, established by the law on January 1 of the tax (reporting) year;

- untimely submission of report on controlled foreign companies by the controlling person entails imposition of a fine in the amount of one amount of the subsistence minimum for an able-bodied person, established by the law on January 1 of the tax (reporting) year, for each calendar day of non-submission, but not more than 50 amounts of the subsistence minimum for an able-bodied person, established by the law on January 1 of the tax (reporting) year.