The State Tax Service of Ukraine released updates to the form and procedures for preparing country-by-country reports.
Among the main changes to the procedure for filling out the country-by-country report of the international group of companies are as follows:
- Clarifications have been made regarding information on the balance sheet value of tangible assets (other than cash or cash equivalents, intangible assets, financial assets) of permanent representative offices (reported as a part of information about jurisdiction (state, territory) in which such permanent representative office is located);
- Need to repeat section II, “List of participants of the international group of companies by each jurisdiction (state, territory),” of the country-by-country report of the international group of companies according to the number of participants of an international group of companies for each such participant who is a tax resident or subject to taxation as a permanent establishment in relevant jurisdictions (states, territories), including the taxpayer who submits the country-by-country report of the international group of companies.
Changes to the form of the country-by-country report of the international group of companies are as follows:
- Column 1.3 “Message type code” is excluded;
- Column 8 “Code of reporting status of member of the international group of companies” – it is possible to select the new code CBC703, which determines the relevant taxpayer’s status and is indicated in cases of:
- such an international group of companies is not required to submit the Country-by-country report of the international group of companies according to the legislation of the parent company of an international group of companies;
- between Ukraine and the corresponding foreign jurisdiction of tax residence of the parent company of an international group of companies, there is an international agreement in force containing provisions on the exchange of information for tax purposes, but the corresponding QCAA agreement has not entered into force as of the end of the fiscal year for which the Country-by-country report of the international group of companies is to be submitted;
- there is an international agreement in force between Ukraine and the corresponding foreign jurisdiction of tax residency of the parent company of an international group of companies, which contains provisions on the exchange of information for tax purposes, but there are facts of systematic non-fulfillment of relevant QCAA agreement;
- Column 22 “Code of the participant’s status in the international group of companies” – it became possible not to fill in this column if the member’s status of an international group of companies does not fall under any of the meanings;
- Columns 26 − 29.2 data on the participant’s addresses of an international group of companies in fixed and arbitrary forms may be repeated depending on the number of types of addresses of participants of the international group of companies;
- Column 30 “Information on the type (types) of economic activity” – the possibility of obligatory reflection of one or more codes СВС501-СBC513 is clarified.
In columns 11, 11.1, 23, 23.1, 24.1, 24.2, 25.1, 25.3, 27, 31.3, notes 2, 3, sections I, II, words “states (territories)” in all cases and numbers are replaced by words “jurisdictions (states, territory).”
Taking into account the above specified, the Country-by-Country reports for the financial year 2022 (which ends in a period from January 1 to December 31, 2022), submitted by taxpayers before the entry into force of Order № 709 and introduction of the possibility of submitting the Country-by-Country report in the updated form, are considered valid.
In addition, please note that the updated XML scheme of the Country-by-country report of the international group of companies and its description (J1800202, J1820102, J1820102 with a note “for developers)” has been published on the web portal of the State Tax Service in section: Home/Electronic reporting/For taxpayers regarding electronic reporting/ Information and analytical support/Register of electronic forms of tax documents.
The introduction of electronic formats for submitting Country-by-country reports of the international group of companies in the updated form will be carried out after the software is finalized.
