State Tax Service received positive assessment of the OECD Global Forum regarding maturity of information security management system

State Tax Service as a competent authority of Ukraine received Report on the maturity of information security management system in Ukraine, approved by the OECD Global Forum, based on the assessment results of compliance with confidentiality and protection of information for automatic information exchange on June 26, 2024. Assessment took place in several stages, starting in 2019, with the final stage taking place from December 11 to 14, 2023. Special attention was paid to processes of information exchange, privacy protection, risk management, matters of logical and physical access control, and approaches to ensuring cyber security.

Implementation of the CRS Common Reporting Standard and the Country-by-Country Reporting (CbCR) standard is coordinated by the OECD Secretariat. Obligatory step towards implementation of automatic information exchange is joining of competent authority to the Common Data Transmission System СТС, which is used by jurisdictions for the secure exchange of information according to the CRS and CbC standards. To do this, jurisdictions must undergo privacy and data protection assessment before such exchanges are made and demonstrate adequate level of protection for information that will be received and processed within these standards. More than 115 jurisdictions are participating in the international multilateral automatic exchange of information as of June 2024. Ukraine has committed to start automatic exchange as early as September 2024. Implementation of these international standards into Ukrainian legislation and practice is carried out with support of the European Union Finance Management Support Programme for Ukraine (EU4PFM).

Reminder! Common Reporting Standard and Due Diligence for Financial Account Information or Common Standard on Reporting and Due Diligence for Financial Account Information (CRS) is international standard that requires implementing countries to collect information from financial institutions about account holders' financial accounts and exchange such information annually on the automatic basis with exchange partner jurisdictions under the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Information accounts (Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA CRS).

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State Tax Service of Ukraine signed the Multilateral Agreement of Competent Authorities on the Automatic Exchange of Information on Financial Accounts (hereinafter – CRS Multilateral Agreement) on August 19, 2022, which enables annual automatic exchange of information on certain types of financial accounts between the competent authorities of jurisdictions that are parties to the specified agreement.

Specialists of the State Tax Service remind of the approach of deadline for submission of reports on accountable accounts by accountable financial institutions – the first report for reporting period beginning on July 1, 2023 and ending on December 31, 2023 must be submitted by July 1, 2024. List of accountable jurisdictions for purposes of reporting Accountable Accounts can be found at the link.