Reporting on CFCs for Former Residents: Duties and Procedures
Reporting on CFCs for Former Residents: Duties and Procedures
In light of concerns that affect the owners of controlled foreign companies (CFCs) in Ukraine, the issue of reporting by those who have lost their tax residency is particularly relevant. Let’s delve into the details based on Individual Tax Consultation No. 696_IPK_99-00-21-02-03 from February 12, 2024.
1. Reporting Obligation
If you were a resident of Ukraine at the end of the reporting period and controlled a foreign company, you are required to file a CFC report for the year 2022 along with your annual income declaration.
2. Electronic Submission Form
The report must be submitted electronically, complying with the requirements for electronic document management and using a qualified electronic signature.
3. Non-resident Status
If you formalized the loss of residency in 2023, you submit your declaration for 2023, indicating “non-resident” status, while also adding the CFC report for 2022.
4. Identification for Electronic Signature
Even if you are no longer a resident, identification for obtaining a qualified electronic signature occurs as a citizen of Ukraine.
For detailed consultation and support in the CFC reporting process, contact “Zubritska’s Accounting Clinic” at expertz.com.ua.
