The first reporting (tax) year for reporting on Controlled Foreign Companies is 2022 (if the reporting year does not correspond to the calendar year – the reporting period that starts in 2022). Controlling persons have the right to submit a report on Controlled Foreign Companies for the year 2022 to the controlling authority simultaneously with the submission of the annual declaration of financial status and income or the corporate income tax return for the year 2023 (i.e., in 2024) for two previous periods: 2022 and 2023, including the adjusted income of the Controlled Foreign Company subject to taxation in Ukraine, in the corresponding declarations for 2023. Penalties and/or fines are not applied in this case.
In accordance with subsection 39-2.3.1. of the Tax Code of Ukraine, if the supervisory authority has doubts about the authenticity of the submitted financial statements of the controlled foreign company, the supervisory authority has the right to demand the provision of a written opinion of the auditing company confirming the financial statements of the controlled foreign company, no earlier than 15 months after the end of the reporting period, in respect of which the adjusted profit of the controlled foreign company is calculated. Such a written opinion should be provided by an auditing company that has the right to conduct audits of financial statements in the relevant foreign jurisdiction, and should not contain a negative opinion or a refusal to issue an opinion.
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