Ukraine is One Step Closer to Implementing CRS Standard

The Government has approved the draft letter to the Global Forum of the Organization for Economic Cooperation and Development on the intention of the Government of Ukraine to implement an international standard for the automatic exchange of financial account information for tax purposes (Common Reporting Standard (CRS).

Ukraine's intention to implement CRS will allow strengthening the image of Ukraine as a predictable partner, which aims to implement the best standards and to combat base erosion and profit shifting from taxation. In addition, this letter will officially begin the process of implementing the CRS in Ukraine.

The introduction of the CRS will create conditions for Ukraine to join the effective international system of exchange of tax information by joining the Multilateral Agreement between the competent authorities on the automatic exchange of information on financial accounts.

This will:

• provide a more transparent tax environment and will help to counter the use of aggressive tax-avoiding schemes;
• increase the level of taxpayer compliance with tax legislation;
• prevent tax evasion.

According to the OECD, in 2019, 100 tax administrations exchanged information on 84 million financial accounts that held about EUR 10 trillion in assets. Every year, the international network of automatic exchange expands - in 2020, 105 countries exchanged, and in 2021, 4 more countries will make their first exchange. Ukraine plans to carry out the first exchanges in September 2023 for the reporting year 2022.