Term for submission of reports on accountable accounts the ultimate beneficial owners of which are the US residents has ended

Press service of the State Tax Service of Ukraine, published 01 September 2021 at 20:10 Chapter: News

On 01.09.2021 has ended the deadline for financial agents to submit reports on accountable accounts according to Agreement between the Government of Ukraine and the Government of the United States of America to improve compliance with tax rules and application of provisions of the U.S. Foreign Account Tax Compliance Act (FATCA).

Information received from financial agents must be submitted to the US competent authority until 30.09.2021(according to the Procedure for filling in and submitting the financial agent’s report on accountable accounts, approved by Order of the Ministry of Finance of Ukraine as of 12.08.2020 № 496 (with amendments)).

Reference.

The Foreign Account Tax Compliance Act, better known by acronym FATCA, was adopted by the United States in 2010 and is aimed at preventing US citizens and residents from evading taxes.

FATCA requires foreign financial institutions to report to the US Internal Revenue Service about movement of funds in the US taxpayers’ accounts. Otherwise, the financial institution can expect a fine from the supervisory authority or even a sanction in the form of 30% deduction from their correspondent accounts from the US banks or even a closure of such accounts.

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