Hetmantsev announces the end of the offshore era in Ukraine

The "anti-offshore" reform counteracts the erosion of the tax base and the transfer of profits abroad.
During 2022-2024, the budget received additional taxes of about UAH 5.3 billion due to control and verification work and compliance measures.

Automatic CRS/CbC exchange and exchange of requests with foreign competent authorities provide new opportunities for comprehensive evidence collection, risk identification and anti-evasion.

Therefore, taxpayers should take this opportunity to clarify their tax liabilities from 2015 (for transfer pricing) and from 2017 (for the use of the benefits of the Conventions) without fines and penalties during the martial law period and demonstrate social responsibility and a high level of tax culture.

Controlled foreign companies

The first company declaration in 2024 for the reporting years 2022-2023 is quite successful and will end with the submission of full reports by December 31, 2024.

The controllers submitted more than 32 thousand reports and declared UAH 1.87 billion in personal income tax to be paid to the budget, which is 40% of the total income declaration campaign for 2023.
However, only in the first 4 months after the deadline for declaring citizens' incomes (May 01, 2024), more than 3 thousand potential CFC controllers have already been identified, almost half of whom have already been involved in reporting.

The slogan that has existed for many years among the population - the rich pay nothing and hide their money abroad - is becoming history with the introduction of the institution of reporting on controlled foreign companies.

Therefore, I urge taxpayers to report, and the tax authority to provide quality assistance to taxpayers in fulfilling their obligations.

Payment of passive income in favor of non-residents

Taking advantage of benefits under international double taxation treaties to move funds abroad is under close scrutiny.
In the period from 2022 to the present, more than 750 audits have been conducted on these risks and additional repatriation tax has been charged in the amount of over UAH 11.4 billion.
The budget has already received about UAH 650 million.

Recently, there has been a trend of taxpayers voluntarily refusing to use the preferential rates of the Conventions, and the budget has received over UAH 200 million from such adjustments.

I urge taxpayers not to abuse their behavior and to declare taxes transparently - the state has enough tools to control tax evaders!