Ukraine has taken an important step towards increasing the transparency of the tax system by implementing the first international automatic exchange of information on financial accounts under the Common Reporting Standard (CRS), the Ministry of Finance of Ukraine reported.
As part of this exchange, the State Tax Service of Ukraine transferred data on financial accounts of non-residents to the tax authorities of partner jurisdictions, and also received information on accounts of tax residents of Ukraine. The exchange included information on financial accounts maintained by financial institutions (such as banks, insurance and investment companies) and belonging to residents of partner jurisdictions. The information includes the name of the owner, address, tax residency, tax number, date and place of birth, as well as account details, balance at the end of the reporting period and the amount of income received.
The Ministry of Finance emphasized that Ukraine's participation in the international system of automatic exchange of information creates a more transparent tax environment and enhances Ukraine's image as a reliable partner in international tax relations.
Thanks to access to information on foreign financial assets of its residents, Ukraine will be able to:
- strengthen control over the completeness of the declaration of taxable income;
- identify undeclared income and combat tax evasion;
- to increase the effectiveness of the tax rules for controlled foreign companies;
- obtain additional sources of tax information for the implementation of indirect methods of control over the taxation of individuals.
This step is part of Ukraine's commitments in the EU integration process and is aimed at increasing tax transparency. The Ministry emphasized that thanks to data exchange, Ukraine will be able to more effectively combat tax evasion, which will contribute to additional tax revenues and, consequently, to the country's economic stability and development.
The CRS provides for the annual automatic exchange of information on certain types of financial accounts between countries that have joined the Multilateral Competent Authorities Agreement. Tax authorities receive an annual set of data on foreign accounts belonging to their tax residents. The first reporting period covered the period from July 1 to December 31, 2023, and the first data exchange was successfully completed on September 30, 2024. Today, about 110 jurisdictions are participants in this international exchange, including all EU Member States.
