State Tax Service reminds that deadline for introduction of the General CRS reporting standard is approaching

Press service of the State Tax Service of Ukraine, published 25 May 2023 at 15:34 Chapter: News

With entry into force of changes to tax legislation regarding implementation of the General CRS reporting standard in Ukraine, from July 1, 2023, financial agents are required to take due diligence measures in order to identify accountable accounts and to submit report on accountable accounts to the State Tax Service annually by July 1.

For the first time, report on accountable accounts has to be submitted in 2024 for the second half of 2023 (the first reporting period). In subsequent reporting period, the previous calendar year will be considered.

State Tax Service, together with the Ministry of Finance, with support of the EU Programme for Support of Public Finance Management in Ukraine (EU4PFM) with an aim of ensuring timely implementation of all preparatory stages necessary for implementation of the General CRS reporting standard in Ukraine, is developing secondary regulations.

In particular, project of Procedure for accounting and de-registration of financial agents that are accountable financial institutions for purposes of the CRS Multilateral Agreement and the General CRS reporting standard has been developed (Sub-paragraph 39-3.3.3 Paragraph 39-3.3 Article 39-3 of the Tax Code of Ukraine).

Draft Procedure provides that all financial institutions that are accountable financial institutions for purposes of the CRS Multilateral Agreement and the General CRS reporting standard (hereinafter - PFU) are subject to registration at the State Tax Service. Accountable financial institution submits application for accounting at the State Tax Service within 60 calendar days after it acquires status of accountable financial institution.

Please note that accountable financial institutions that will submit reports on accountable accounts exclusively for themselves are accounted for once.

If accountable financial institutions are joint investment institutes (equity or corporate investment funds), then the asset management company that manages assets of the respective joint investment institute submits reports for such accountable financial institutions (Paragraph 39-3.11 Article 39-3 of the Tax Code of Ukraine). Registration of joint investment institutions as accountable financial institutions is also carried out at the request of the asset management company. For this purpose, the asset management company submits application for its accounting as accountable financial institution and for registration of all collective investment institutions of this asset management company, which are also accountable financial institutions.

As a general rule (if institution reports only on its own behalf), financial institution is accounted as accountable financial institution under the tax number.

If registration application is submitted by the asset management company to be registered as a joint investment institute, the registration number of the joint investment institute as accountable financial institution is formed from the tax number of the asset management company and registration number of the corresponding joint investment institute in the Unified State Register of Joint Investment Institutes.

Familiarize yourself with the draft Procedure, as well as other documents and materials on the implementation of the General CRS reporting standard at a link https://tax.gov.ua/baneryi/crs/normativno-pravovi-akti.