Penalties and/or fines are not applied for late submission of the CIC Notice

If you, as a resident of Ukraine, own 50%+ of the authorized capital in a foreign company, then you probably need to submit a Notice to the same CIC. If the submission deadline is missed, what should I do?

Submit, because so far the responsibility does not apply. But only for late submission, and for non-submission it is applied. If the tax office itself discovers the presence of CIC, then responsibility will be applied.

You can submit it in the payer's electronic account with the keys generated in the client-bank of Privat 24 or another bank.

Where is it written?

It is not possible to highlight the quote directly in the PKU, but there is an explanation in the ZIR, so you can be guided by it until the moment of making changes.

regarding untimely submission ( clarification of ZIR )

Does the responsibility for late submission of notice of acquisition or termination of participation in controlled foreign companies (CFCs) apply to a resident FI?

Answer

Short:

Not applicable.

Full:

Cases of submission of a Notice of acquisition (beginning of actual control) or alienation of a share (termination of actual control) by a resident in a foreign legal entity or property rights to a share in the assets, income, or profit of an entity without the status of a legal entity (hereinafter referred to as the Notice), as well as its term submissions are defined by p. 39 notes 2.5.5 clause 39 note 2.5 Art. 39 notes 2 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI as amended (hereinafter - Tax Code).

Yes, an individual who is a resident of Ukraine is obliged to inform the supervisory authority about:

- each direct or indirect acquisition of a share in a foreign legal entity or the beginning of actual control over a foreign legal entity, which leads to the recognition of such a legal entity as a controlling entity in accordance with the requirements of Art. 39 notes 2 PKU;

- foundation, creation or acquisition of property rights to a share in assets, income or profit of an entity without the status of a legal entity;

- each alienation of a share in a foreign legal entity or termination of actual control over a foreign legal entity, which leads to the loss of recognition of such a legal entity as a controlling entity in accordance with the requirements of Art. 39 notes 2 PKU;

- liquidation or alienation of property rights to a share in assets, income or profit of an entity without the status of a legal entity.

The notification is sent to the supervisory body within 60 days from the date of such acquisition (start of actual control) or alienation (termination of actual control).

Penalties and/or fines are not applied for late submission of the Notice

Regarding non-submission ( explanation of ZIR )

Does the responsibility for failure to submit a notice of acquisition or termination of participation in controlled foreign companies (CFCs) apply to a resident FI?

Short answer and full answer are identical:

In accordance with clause 120.7 of Art. 120 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI with amendments and additions of non-notification by the controlling person to the controlling body about the acquisition of a stake in a foreign legal entity, formed without the status of a legal entity, or about the start of actual control over a foreign legal entity, or about alienation shares in a foreign legal entity, or on the termination of actual control over a foreign legal entity within the terms provided for in para. 39 notes 2.5.5 clause 39 note 2.5 Art. 39 notes 2 of the Code of Civil Procedure, entails the imposition of a fine in the amount of 300 units of the subsistence minimum for an able-bodied person, established by law on January 1 of the tax (reporting) year, for each such fact.

Yes, but where is it really written?

Subsection 10 of Chapter XX, Clause 54 of the PKU:

according to the results of the 2022-2023 reporting (tax) years, administrative and criminal liability for any violations related to the application of the norms of Article 39-2 of this Code shall not apply to the taxpayer and his officials. In this regard, the information and/or documents received by the controlling body in accordance with Article 39-2 of this Code, based on the results of the 2022-2023 reporting (tax) years:

a) is information with limited access that cannot be requested and/or transferred to law enforcement agencies at their request or within the framework of the procedures provided for by the Criminal Procedure Code of Ukraine ;

b) cannot be considered evidence in criminal proceedings within the meaning of Article 84 of the Criminal Procedure Code of Ukraine";

Then the next stage is the submission of the Report.

You submit the report together with the annual declaration of assets and income to the supervisory authority. Attach certified copies of financial statements. reports confirming the amount of KIK's profit, and a new form will be issued there from January 2024.

Term until March 1, 2024 for 2023.

A certified copy of the notarial report is required. But about that separately :)