State Tax Service informs about completion of the first CRS reporting campaign

Paragraph 2 of Order of the Ministry of Finance of Ukraine № 516 as of 25.09.2023 "On approval of Procedure for filling out and submitting Report on accountable accounts by financial agents in accordance with the multilateral agreement of competent authorities on the automatic exchange of information on financial accounts" stipulates that the first Report on accountable accounts for reporting period, which started on July 1, 2023 and ended on December 31, 2023, must be submitted by accountable financial institutions to the controlling authority by July 1, 2024.

State Tax Service received Reports on accountable accounts from 1652 accountable financial institutions, which is 91% of all registered accountable financial institutions as of July 1, 2024.

Reminder! Paragraph 118¹.1 Article 118¹ of the Tax Code of Ukraine (hereinafter – Code) stipulates that failure by accountable financial institutions to submit Report on accountable accounts in accordance with requirements of Article 39³ of the Code entails imposition of a fine equal to 100 times minimum salary established by the law on January 1 of reporting (tax) year. Payment of such fine does not release accountable financial institutions from obligation to submit Report on accountable accounts.

At the same time, fine established by Paragraph 118¹.3 Article 118¹ of the Code for late submission of Report on accountable accounts in 2024 does not apply, according to Paragraph 53¹.3 Section 10 Sub-section XX of the Code.

State Tax Service emphasizes that those accountable financial institutions that have not timely submitted Reports on accountable accounts are still able to submit the first report without financial sanctions.

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

Introduction of the CRS 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).