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21
October
2022

Rada profile committee proposes to simplify administration of controlled foreign companies

KYIV. Oct 21 (Interfax-Ukraine) – In order to facilitate the administration of controlled foreign companies, narrow the criteria for controlling persons and simplify reporting, Head of the parliamentary committee on finance, tax and customs policy Danylo Hetmantsev, his deputy Yaroslav Zhelezniak and a group of MPs propose in the draft law registered in the Rada on Friday (No. 8137).

As Hetmantsev said in his Telegram channel, the bill will also improve the tax audit procedure and contain other rules required by business.

According to an explanatory note to the document, the criteria for classifying a person on the list of controlled persons have also been clarified: now they include spouses, minor children (including adopted children and those who are under guardianship).

At the same time, charitable and public organizations are not considered controlled by foreign companies, and membership in them does not lead to the recognition of the taxpayer as a controlled person, but such circumstances must be documented by the taxpayer.

In addition, legal or actual control over a controlled foreign company will be determined as of December 31 of the relevant year.