Deadline for submitting full Report on controlled foreign companies is approaching

Press service of the State Tax Service of Ukraine, published 19 December 2024 at 11:31 Chapter: News

It should be reminded to the attention of controllers of controlled foreign companies to the fact that deadline for submitting full Report on controlled foreign companies for the reporting (tax) year 2023 expires on December 31, 2024 according to Sub-paragraph 39².5.4 Paragraph 39².5 Article 39² of the Tax Code of Ukraine (hereinafter – Code).

Controlling entities submitted 10395 reports on controlled foreign companies in the abbreviated form, of which only 19% submitted full Reports on controlled foreign companies as of 01.12.2024.

Each controller is required to submit annual Report on controlled foreign companies. If it has several controlled foreign companies, Report is submitted for each controlled foreign company separately.  

Report must be accompanied by duly certified copies of financial reporting of the controlled foreign company, confirming amount of profit of the controlled foreign company for the reporting (tax) year.

Form of the Report on controlled foreign companies was approved by Order of the Ministry of Finance of Ukraine № 254 as of 25.08.2022.   

Electronic forms of documents are posted on the State Tax Service’s web portal in section "Electronic reporting/To taxpayers about electronic reporting/Information and analytical support/Register of electronic forms of tax documents" (forms J0108701 and F0108701).

Herewith, Paragraph 120.7 Article 120 of the Code, specifically provides for imposition of the following fines  

- non-submission by the controlling entity of the Report on controlled foreign companies entails imposition of a fine in the amount of 100 subsistence minimums for able-bodied person, established by the law as of January 1 of the tax (reporting) year;

- untimely submission by the controlling entity of the Report on controlled foreign companies entails imposition of a fine in the amount of one subsistence minimum for able-bodied person, established by the law as of January 1 of the tax (reporting) year, for each calendar day of failure to submit, but not more than 50 subsistence minimums for able-bodied person, established by the law as of January 1 of the tax (reporting) year.