Implementation of the CRS Common Reporting Standard

30/03/2023

In the second reading, the Verkhovna Rada supported draft law No. 8131 "On amendments to the Tax Code of Ukraine regarding the implementation of the international standard of automatic exchange of information about financial accounts."

The draft law was created for Ukraine's implementation of the Common Reporting Standard and due diligence of information about financial accounts, approved by the OECD (CRS Standard).

The implementation of the CRS Standard is a mandatory condition for Ukraine to join the international information exchange system within the framework of the Multilateral Agreement of Competent Authorities on the Automatic Exchange of Information about Financial Accounts (Multilateral Agreement CRS), to which Ukraine, represented by the State Tax Service, joined in August 2022.

In particular, the draft law stipulates the following:

functions and rights of supervisory authorities in order to ensure the receipt of information necessary for exchange, in accordance with the CRS Standard;

requirements for financial agents to apply the rules of the CRS Standard during due diligence of financial accounts and to submit to the State Tax Service information about the financial accounts of account holders who are tax residents of other jurisdictions - information exchange partners;

requirements regarding the minimum period of storage of documents and the procedure for providing such documents to the supervisory body by some economic entities;

the procedure for obtaining information for tax purposes by the controlling authority in accordance with the CRS Standard and at the request of the competent authority of a foreign jurisdiction on the basis of an international agreement;

an effective control mechanism for compliance with the requirements of the CRS Standard by financial agents.

How we can help

We recommend that you contact us if you have any questions regarding the international exchange of information about financial accounts. SCHNEIDER GROUP experts will advise you on the current requirements of the CRS Standard.

About SCHNEIDER GROUP

Since 2006 SCHNEIDER GROUP has been supporting international companies expanding to Ukraine. Our portfolio includes a full scope of services: from market analysis and partner search to complete accounting outsourcing, legal and tax consulting, and interim management services. We take over all non-core business functions so that our clients can focus on developing their business. We help our clients establishing subsidiaries in Ukraine compliant with local legislative requirements and transparent for international management. Our experts offer advice on best practices to optimise processes, reduce risks and minimise costs.

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