According to paragraph 69.8.3 of Article 69 of the Tax Code of Ukraine, financial agents are required to submit a report on accountable accounts to the central executive body that implements the state tax policy by September 1 of each year.
According to paragraph 3.2 of Article 3 of the Code, if an international agreement, the binding nature of which has been approved by the Verkhovna Rada of Ukraine, establishes rules other than those provided for in this Code, the rules of the international agreement shall apply.
Article 4 (6) (b) of the Agreement between the Government of Ukraine and the Government of the United States of America for the Improvement of Tax Compliance and the Application of the Foreign Tax Accounts Act (FATCA) provides that notwithstanding Article 3 (3) and (5) of this Agreement , Ukraine does not undertake to start exchanging information before the date by which the participating foreign financial institutions are required to submit such information to the Internal Revenue Service in accordance with the regulations of the US Treasury Department.
The State Tax Service of Ukraine is the competent authority for the purposes of automatic exchange of information under the FATCA Agreement.
The deadline for submitting reports to the US Internal Revenue Service for the 2019 tax year has already been extended to December 31, 2020. Due to the fact that the TCU sets a reporting period for financial agents, which provides the competent authority with a month to process and verify the information provided, the deadline for financial agents to submit a report on accounts has already been extended by the Ministry of Finance to December 1, 2020.
Prior to this date, financial agents had to submit through the IDES portal (International data exchange service – International Data Exchange Service) to the State Tax Service of Ukraine (central executive body implementing the state tax policy) reports on accounts for 2019 and information related to reporting periods from 2014 to 2018, in accordance with the provisions of the FATCA Agreement.
Pursuant to Article 8, paragraph 1, of the FATCA Agreement, due to difficulties in implementing this Agreement and the COVID-19 pandemic, the Ministry of Finance of Ukraine has consulted with the US Internal Revenue Service on the postponement of the reporting period for Ukraine.
By letter dated 12.11.2020, the US Internal Revenue Service (IRS) informed the Ministry of Finance of Ukraine about the postponement of the deadline for reporting on accounts for Ukraine (for the reporting periods from 2014 to 2019) to September 30, 2021.
Therefore, for the State Tax Service of Ukraine, which is the competent authority for the purpose of automatic exchange of information under the FATCA Agreement, the deadline for submission to the US Internal Revenue Service of accounts for 2014-2019 has been extended to September 30, 2021.
Given the above and in accordance with paragraph 69.8.3 of Article 69 of the Tax Code of Ukraine, banks are required to submit to the State Tax Service of Ukraine (central executive body implementing state tax policy) reports on accounts for 2020 and information relating to reporting periods from 2014 until 2019, until September 1, 2021.