Tax authorities start receiving data on foreign accounts of Ukrainians
4 October 2024 16:20
Ukraine has made its first international automatic exchange of information under the Common Reporting Standard (CRS). The tax authorities received data on the accounts of Ukrainians abroad. This was reported by the press service of the Ministry of Finance of Ukraine, "Komersant Ukrainian" reports.
In particular, the subject of the exchange was information on financial accounts maintained by financial institutions (banks, insurance and investment companies, etc.) and owned by residents of partner jurisdictions, namely: the name of the owner, his address, tax residence, tax number, date and place of birth, information about the financial institution, account information: balance at the end of the reporting period, total amount of dividends, interest or other income.
The automatic exchange of tax information is part of Ukraine’s obligations in the process of integration into the EU and is aimed at increasing the transparency of the tax sphere.
It is noted that Ukraine’s access to information on foreign financial assets of its residents according to the CRS standard will allow
- strengthen control over the timeliness and completeness of the declaration of taxable income;
- identify undeclared income to combat tax evasion by individuals;
- improve the efficiency of application of the rules on taxation of controlled foreign companies;
- obtain an additional source of tax information when implementing indirect methods of control over the taxation of individuals.
“Thanks to the exchange, Ukraine will be able to fight tax evasion more effectively, which will contribute to additional tax revenues and, consequently, to the country’s economic stability and development,” the agency said.
As of January 2024, about 110 jurisdictions are members of the international multilateral automatic exchange of information on financial accounts, including all EU member states.
The first reporting period covered the period from 1 July to 31 December 2023, and the first data exchange was successfully completed on 30 September 2024.
