DETERMINE INCOME REPORTING OBLIGATIONS IN UKRAINE (INCLUDING CFC REPORTING) ✅ TAXES ✅ SERVICES

Lawyer's actions:

analysis of the client's situation (place of residence, centre of vital interests, length of stay in Ukraine, availability of assets);
verification of tax residency in accordance with Ukrainian legislation;
request for documents regarding ownership of foreign companies, corporate structure and share ownership;
analysis of the grounds for recognising a company as a CFC;
provision of a written legal opinion on the need to file a tax return and/or CFC reporting.

Lawyer's actions:

analysis of the ownership structure of foreign companies, verification of the level of control and signs of influence;
identification of criteria that fall under the definition of a CFC;
establishment of deadlines and requirements for reporting;
calculation of taxable profit (if necessary);
preparation of a consultation document describing the risks, sanctions and possible actions.

Lawyer's actions:

drafting a CFC notification (if required for submission to the State Tax Service of Ukraine);
preparing powers of attorney, requests or letters to tax authorities;
providing advice on optimal tax structuring of income;
consulting on avoiding double taxation.

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When is one required to file an income tax return in Ukraine?

If you are a citizen of Ukraine and continue to have tax resident status, even if you live abroad, you may still have obligations to the Ukrainian tax authorities.

Income declaration in Ukraine is mandatory:

if you have foreign income;
if you receive profits from investments, real estate or business activities;
to monitor compliance with currency legislation.

The Consultant legal marketplace will help you determine whether you are a tax resident of Ukraine and whether you are required to file an annual tax return or report on CFCs (controlled foreign companies).

What are the tax implications of CFC reporting for Ukrainian citizens abroad?

In accordance with amendments to the Tax Code of Ukraine, from 2022, individuals who directly or indirectly own controlled foreign companies (CFCs) are required to submit special reports to the State Tax Service every year.

Violation of these requirements may result in:

additional income tax charges;
fines for failure to submit or late submission of reports;
tax audits.

analyse your corporate structure (including trusts, foundations, offshore companies)
check ownership thresholds and degree of control
provide an opinion on whether you are required to submit a CFC report
prepare written recommendations for optimising tax consequences.

How to determine tax residency in Ukraine when living in the United Kingdom?

A tax resident of Ukraine is a person who has:

permanent residence in Ukraine;
centre of vital interests (family, assets, business);
has stayed in Ukraine for more than 183 days in a calendar year.

At the same time, even if you have become a resident of the United Kingdom, the Ukrainian tax authorities may consider you a resident of Ukraine if your tax residency has not been officially terminated or a double taxation agreement has not been signed.

Our marketplace consultants:

check your status in accordance with Ukrainian and British law;
provide a clear answer as to whether you need to file a tax return in Ukraine;
assist with the preparation of letters to the State Tax Service, explanations or accompanying documents.

Conclusion

The Consultant legal marketplace helps Ukrainians living in the United Kingdom to understand their obligations regarding tax returns and CFC reporting in Ukraine. Our lawyers provide a clear legal position on your tax status, help you avoid penalties and comply with Ukrainian legislation.