Ukraine establishes the procedure for cross-country reporting

In early February of this year, the Ministry of Justice of the Ukraine registered an Order of the Ministry of Finance establishing procedures for cross-country reporting (Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports, hereinafter CbC), which was introduced in 2020. The requirements apply to the international groups of companies (MNE) with consolidated revenue of EUR 750 million in the reporting year.

Ukrainian taxpayers must submit a report to the CbC if:

• the ultimate parent company of the group is directly the taxpayer of the Ukraine;

• the taxpayer of the Ukraine was appointed by the parent company to submit the specified report;

• the ultimate parent company is not required to file a report in the jurisdiction of its registration and has not appointed another company of the group to file a report in another jurisdiction;

• there is a tax agreement between the Ukraine and the jurisdiction of the ultimate parent company or another authorized company of the reporting group, but there is no valid CbC exchange agreement or there is a system failure in the exchange.

The requirement to submit a CbC report applies for the first time to the reporting financial years that end in 2021. It is important that the requirements will not be applied earlier than the year in which the Ukraine signs the Multilateral Agreement (CbC MCAA). To date, the Ukraine has not signed it, but if the agreement is signed before the end of 2021, the requirements will apply from 2021.

Link to the source: http://www.visnuk.com.ua/ru/news/100022902-zvit-u-rozrizi-krayin-mizhnarodnoyi-grupi-kompaniy-nakaz-...