Members of the international group of companies, attention!

Form and Procedure for filling out the Country-by-country report of the international group of companies have been updated

State Tax Service of Ukraine reminds that Order of the Ministry of Finance of Ukraine № 709 as of 21.12.2023 "On amendments to Order of the Ministry of Finance of Ukraine № 764 as of 14.12.2020" entered into force on 15.02.2024 (registered in the Ministry of Justice of Ukraine on 04.01.2024 under № 28/41373) (hereinafter – Order № 709) with changes introduced by Order of the Ministry of Finance of Ukraine № 12 as of 12.01.2024 (registered in the Ministry of Justice of Ukraine on 15.01.2024 under № 80/41425). 

Changes were made with an aim of bringing it into line with provisions of the Law of Ukraine № 2970-IX as of 20.03.2023 "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding implementation of the international standard of automatic exchange of information on financial accounts".

Above specified was posted on web portal of the State Tax Service in section: Home/Press Center/News (https://tax.gov.ua/en/mass-media/news/691761.html).

Among the main changes to Procedure for filling out the Country-by-country report of the international group of companies, it is worth noting the following:

- clarifications have been made regarding information on the balance sheet value of tangible assets (other than cash or cash equivalents, intangible assets, financial assets) of permanent representative offices (reported as a part of information about jurisdiction (state, territory) in which such permanent representative office is located);

- need to repeat section II "List of participants of the international group of companies by each jurisdiction (state, territory)" of the Country-by-country report of the international group of companies according to the number of participants of international group of companies for each such participant who is a tax resident or subject to taxation as a permanent establishment in relevant jurisdictions (states, territories), including the taxpayer who submits the Country-by-country report of the international group of companies.

Changes to the form of the Country-by-country report of the international group of companies should also be noted, namely:

- column 1.3 "Message type code" is excluded;

- column 8 "Code of reporting status of member of the international group of companies" –  it is possible to select new code CBC703, which determines relevant taxpayer’s status and is indicated in cases of:

such international group of companies are not required to submit the Country-by-country report of the international group of companies (according to legislation of the parent company of international group of companies);

between Ukraine and the corresponding foreign jurisdiction of tax residence of the parent company of international group of companies there is international agreement in force containing provisions on the exchange of information for tax purposes, but the corresponding QCAA agreement has not entered into force as of the end of fiscal year for which the Country-by-country report of the international group of companies is to be submitted;

there is international agreement in force between Ukraine and the corresponding foreign jurisdiction of tax residency of the parent company of international group of companies, which contains provisions on the exchange of information for tax purposes, but there are facts of systematic non-fulfillment of relevant QCAA agreement;

- column 22 "Code of the participant’s status in the international group of companies" – it became possible not to fill in this column if the member’s status of international group of companies does not fall under any of meanings;

- columns 26 − 29.2 data on the participant’s addresses of international group of companies in fixed and arbitrary forms may be repeated depending on the number of types of addresses of participants of the international group of companies;

- column 30 "Information on the type (types) of economic activity" – possibility of obligatory reflection of one or more codes СВС501-СBC513 is clarified.

In columns 11, 11.1, 23, 23.1, 24.1, 24.2, 25.1, 25.3, 27, 31.3, notes 2, 3, sections I, II, words "states (territories)" in all cases and numbers are replaced by words "jurisdictions (states, territory)".

Taking into account above specified, the Country-by-Country reports for financial year 2022 (which ends in a period from January 1 to December 31, 2022), submitted by taxpayers before the entry into force of Order № 709 and introduction of the possibility of submitting the Country-by-Country report in the updated form, are considered valid.

In addition, please note that the updated XML scheme of the Country-by-country report of the international group of companies and its description (J1800202, J1820102, J1820102 with a note "for developers)" has been published on web portal of the State Tax Service in section: Home/Electronic reporting/For taxpayers regarding electronic reporting/ Information and analytical support/Register of electronic forms of tax documents.

Introduction of electronic formats for submission of Country-by-country report of the international group of companies in the updated form will be carried out after the software is finalized.