To the attention of participants in an international group of companies. The State Tax Service of Ukraine (STSU) in its clarification dated July 14, 2023, titled "Important for Participants in International Group of Companies," informs about the introduction of changes by Law No. 2970-IX regarding the submission of reports broken down by countries within an international group of companies (hereinafter referred to as the "Country-by-Country Report").
- The definition of an international group of companies (IGC) has been expanded to include legal entities or entities without legal personality conducting economic activities through permanent establishments in another jurisdiction (state or territory).
- The circumstances under which the Country-by-Country Report is to be filed have been specified.
- The first reporting period:
for Ukrainian residents who are the ultimate parent entities of IGCs required to submit the Country-by-Country Report is the year 2022 (with a deadline for submission of the report by December 31, 2023).
For other taxpayers, it is the year in which the Multilateral Competent Authority Agreement on the Automatic Exchange of Country-by-Country Reports enters into force with at least one foreign jurisdiction.
- Starting January 1, 2022, only those taxpayers who are participants in the relevant IGC and who conducted controlled transactions during the reporting year must submit notifications of their participation in an IGC (by October 1 of the year following the reporting year). The definition of inaccurate information contained in the Notification of Participation in an IGC has been clarified: this includes information that affects the accuracy of the identification of each of the IGC participants, the jurisdiction (state or territory) of their registration, activities, tax residency, and the jurisdiction for submitting the Country-by-Country Report.