In accordance with the Tax Code of Ukraine, each CFC owner is obliged to submit CFC reports.
CFC reports must be submitted annually. The financial statements of the foreign company must be attached to the CFC report. The entire package of documents is submitted by an individual together with a tax return on property and income. In 2024, the CFC report had to be submitted by May 1, 2024.
Please note that even if you have a foreign company that does not operate and does not conduct any activities, it is mandatory to submit a CFC report for this company as well. If you have an offshore company that does not file reports in the country of registration, does not operate, you must also submit a CFC report and prepare financial statements in accordance with international standards and submit the relevant CFC reports in Ukraine.
Important!
The CFC report is submitted for each controlled foreign company separately and exclusively in electronic form.
What is the reporting period and for which reporting period should the CFC be submitted? In many foreign countries, a company's fiscal year is a calendar year that begins on January 01 and ends on December 31.
If the company's fiscal year does not coincide with the reporting year, for example, as in the UK, the financial report for a CFC must be submitted for the period ending within the calendar year required for the CFC to submit the report.
What must be attached to the CFC report?
The CFC report must be accompanied by duly certified copies of the CFC's financial statements confirming the amount of the CFC's profit for the reporting (tax) year. Even if the country of incorporation of a company does not require the filing of financial statements, our accountants can help to prepare such financial statements in accordance with international standards and the requirements set out in the Tax Code of Ukraine.
If a person is unable to ensure the preparation of CFC financial statements by the deadline for submitting the annual property declaration, such person must submit a report on the CFC in a shortened form. And after the financial statements in the country of registration are prepared and submitted, submit a full CFC report by the end of the calendar year following the reporting (tax) year.
Our specialists have already successfully submitted CFC reports for our clients for 2022-2023 in 2024. You are in good hands with us, so we offer the following range of services:
- Analysis of the structure of the foreign company (companies)
- Determination of the owners' obligations regarding CFC reporting
- Determination of reporting periods for each of the CFCs
- Preparation of CFC reports
- Preparation of the annual declaration of property and income
- Support for submission of CFC reports
As a result, you will receive confirmation from the tax service, that the CFC report was accepted without errors and, accordingly, you will properly fulfill your obligations to prepare and submit CFC reports.
