According to the Tax Code of Ukraine, each owner of a controlled foreign company (CFC) is obliged to submit annual reports on the CFC. Before submitting the reports, it is important to determine what documents need to be prepared.
Requirements for submitting CFC reports
- CFC reports are submitted annually.
- The report must be accompanied by the financial statements of the foreign company.
- The entire package of documents is submitted together with a tax return on property and income.
- In 2025, the CFC report for 2024 must be submitted.
Please note! Even if your foreign company does not operate and does not carry out any activities, you must submit CFC reports. This also applies to offshore companies that do not file reports in the country of registration or do not conduct business.
Types of CFC reporting
Depending on the possibility of preparing financial statements, one of two types of reports is submitted:
- Full report - contains all the necessary information and audited financial statements.
- An abbreviated report is submitted if it is not possible to prepare full financial statements of the CFC by the deadline date.
The CFC report is submitted for each controlled foreign company separately and exclusively in electronic form.
Reporting period of a CFC
- A reporting (tax) period is a calendar year or other reporting period of a CFC that ends within a calendar year. In many foreign countries, a company's fiscal year corresponds to the calendar year that begins on 1 January and ends on 31 December.
- If the company's financial year does not coincide with the reporting/calendar year, for example, as in the UK, the CFC financial report must be submitted for the period ending within the calendar year required for the CFC report submission.
What should be included in the CFC report?
The following documents must be attached to the CFC report:
- Duly certified copies of the CFC's financial statements confirming the amount of the CFC's profit for the reporting (tax) year.
- If the country of registration of the company does not require the submission of financial statements, our accountants can help to prepare such financial statements in accordance with international standards, in accordance with the requirements established by the Tax Code of Ukraine.
- If a person does not have time to prepare financial statements by the date of submission of the annual declaration, they may first submit an abbreviated report, and then a full report (by the end of the calendar year following the reporting year).
How Maira Consult helps with CFC reporting
Maira Consult specialists have successful experience in submitting CFC reporting for 2022-2023 and offer a full range of services:
- Consultations on CFCs;
- Analysis of the structure of a foreign company;
- Determination of owners' responsibilities for CFC reporting;
- Determination of reporting periods;
- Preparation of CFC reports;
- Preparation of the annual declaration of property and income;
- Preparation of financial statements in accordance with international standards;
- Support for submission of reports to the tax service.
Quality assurance: As a result, you will receive a confirmation from the tax service that the CFC report was accepted without errors and, accordingly, you will properly fulfil your obligations to prepare and submit CFC reports.
Don't risk fines! Let Maira Consult professionals prepare your CFC reporting.
