On 28 March 2024, the State Tax Service of Ukraine released a notice directed to companies and individuals residing in Ukraine, detailing their duty to report on controlled foreign companies.
This notification outlines the requirement for Ukrainian residents to submit detailed information regarding:
- The direct or indirect acquisition of shares in a foreign company or initiating actual control over a foreign legal entity, resulting in the classification of the resident individual or organization as a controlling party;
- Gaining rights to a share of the assets, profits, or earnings of a foreign entity that does not have a legal status;
- The disposal of shares in a foreign company or ending actual control over a foreign legal entity resulting in the termination of recognition of the resident individual or legal entity as a controlling party;
- The disposal of rights to a share in a foreign entity’s assets, profits, or income without the status of a legal entity.
In the cases mentioned above, it is mandatory to dispatch a notification within 60 days following the date of acquisition or alienation.
On 6 February 2024, the State Tax Service of Ukraine issued a release outlining the mandatory reporting of controlled foreign companies.
