To the attention of controllers of controlled foreign companies

Press service of the State Tax Service of Ukraine, published 28 March 2024 at 14:00 Chapter: News

Controlled foreign company is any legal entity registered in a foreign state or territory that is recognized as being under control of individual – resident of Ukraine or legal entity – resident of Ukraine.

Sub-paragraph 392.5.5 Paragraph 392.5 Article 392 Section I of the Tax Code of Ukraine stipulates that individual (legal entity) – resident of Ukraine is obliged to notify the controlling body about:

each direct or indirect acquisition of a share in foreign legal entity or beginning of actual control over foreign legal entity, which leads to recognition of such individual (legal) entity as controlling entity according to requirements of this Article;

foundation, creation or acquisition of property rights to a share in assets, income or profit of entity without the legal entity’s status;

each alienation of a share in foreign legal entity or termination of actual control over foreign legal entity, which leads to the loss of recognition of such individual (legal) entity as controlling entity according to requirements of this Article;

liquidation or alienation of property rights to a share in assets, income or profit of entity without the legal entity’s status.

Notification is sent to the controlling body at main registration place of individual (legal entity) – resident of Ukraine within 60 days from the day of such acquisition (start of actual control) or alienation (termination of actual control).

Form and procedure for sending Notifications to the controlling body are approved by Order of the Ministry of Finance of Ukraine № 512 as of 22.09.2021, registered in the Ministry of Justice of Ukraine on 22.11.2021 under № 1525/37147.

In order to minimize mistakes made by individuals and legal entities submitting Notifications, the State Tax Service of Ukraine informs that, according to the algorithm of arithmetic and logical data verification of Notification, in Section III "Information on the acquisition/allocation of a share in foreign legal entity" all lines are must be filled in and may contain numbers and letters, both Ukrainian and Latin.

As follows, filling in field of line 12.3 "indirect ownership", if amount of indirect ownership is zero percent, in field of lines 14 and 15 it is advisable to indicate: "no information", which indicates absence of information.