Ukraine is One Step Closer to the Implementation of International Automatic Exchange of Tax Purposes Information

On August 19, 2022, the State Tax Service of Ukraine joined the CRS Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information. 

The purpose of joining the CRS Multilateral Agreement is to join Ukraine in the international system of automatic exchange of information on financial accounts following the CRS General Reporting Standard, approved by the OECD Council on July 15, 2014, which will contribute to the creation of a more transparent tax environment and improve image of Ukraine as a reliable and equal partner in international information tax relations.

In addition, the systematic analysis of information received by the State Tax Service from foreign competent authorities is an important tool for monitoring the timeliness and completeness of the declaration of taxable assets and income, identifying undeclared assets and income, and combating the evasion of Ukrainian residents from payment of taxes.

The first exchange of information is planned for September 2024 for the 2023 calendar year. The agreement on the postponement of the date of the first exchange was reached as a result of consultations with experts of the OECD Global Forum.

The Ministry of Finance will update relevant information on the OECD website shortly.

Accession to the CRS Multilateral Agreement is a necessary but not sufficient term for the introduction of automatic information exchange. It will become possible only after Ukraine adopts the legislation necessary for the implementation of the CRS General Reporting Standard, passes inspections by the OECD Global Forum regarding compliance with the requirements of the relevant standards and ensures technical capacity STS to carry out such information exchange and fulfill other conditions specified in Section 7 of the CRS Multilateral Agreement.

To complete and timely implement the necessary steps, the Ministry of Finance coordinates and ensures the implementation of all preparatory stages.

Thus, to ensure compliance with the provisions of national legislation with the requirements of the CRS General Reporting Standard, the Ministry of Finance has developed a draft Law of Ukraine On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine regarding the implementation of the international standard for automatic exchange of information on financial accounts. Then it will be sent to the Cabinet of Ministers of Ukraine for further submission to the Parliament of Ukraine.