The Ministry of Finance has approved the procedure for financial agents to submit a report under the FATCA Agreement

In order to fulfill the provisions of the Agreement between the government of Ukraine and the government of the United States of America to improve international tax compliance and to implement provisions of the USA Law “Foreign Tax Compliance Act” (FATCA), the Ministry of Finance of Ukraine has approved the Procedure of filing and submission of reports on financial accounts by reportable financial institutions.

According to the document, Ukrainian reportable financial institutions will be able to submit to the State Tax Service of Ukraine (hereinafter - STS), via IDES (International Data Exchange Services), reports on financial accounts, which were opened by USA taxpayers in Ukrainian financial institutions in cases and volumes determined by the Agreement.

Report on financial accounts is filed in English (Latin characters) and submitted in electronic form as a single XML file. In case of the absence of reportable financial accounts during the reporting period, the reportable financial institution has to submit a zero report to the STS via IDES.

Exchange of information will be centralized by the STS and will be submitted to the competent authority of the United States of America (IRS) in accordance with Ukrainian legislation.

Procedure and information on reporting deadlines are available by following this link.

As for now, the exchange of information will be conducted unilaterally - from Ukraine to the USA, but a bilateral exchange of information can be implemented in the future after additional consultation between Ukraine and the United States of America and consequent amendment of the Agreement.

For reference:

USA Law “Foreign Accounts Tax Compliance Act” (FATCA) entered into force on 1st of July, 2014. Its main objective is to prevent tax evasion by American citizens that work outside of the United States of America. This law obliges foreign banks and other financial institutions to submit information about US clients, individuals and legal entities, to the U.S. tax service - IRS.