On Sep. 2, UKRN GVT reminded of start of tax reports exchange.
UKRN GVT reminded that the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC) entered into force in July 2024.
Over 100 countries have joined international system of automatic exchange of reports.
The introduction and exchange of reports across countries is provided for by provisions of Step 13 of the Minimum Standard of the BEPS action plan, a set of international tax rules aimed at strengthening the tax base, which Ukraine undertakes to implement.
CbC reporting is submitted by taxpayers if the total consolidated income of the international group of companies to which taxpayer belongs meets certain thresholds.
Form of the report and procedure for filing it was approved by UKRN GVT in 2021.
Reporting
Ukraine taking part in the international system of automatic exchange of information will contribute to the creation of a more transparent tax environment.
And improve its image as a reliable and equal partner in international tax relationships.
Will allow Ukraine's tax authorities to receive comprehensive information on activities of international groups of companies in the context of specific jurisdictions.
As well as to carry out effective analysis of groups' scope of activities, structure of operations, specifics of activities of international groups in relation to transfer pricing.
The reports are part of a 3-tiered system of transfer pricing documentation for international groups, which includes transfer pricing (local file), and global transfer pricing documentation (master file).
