In 2024, controlled foreign companies submitted both full and abbreviated reports, and we strongly recommend doing the same in 2025. Why? Our clients who registered a company at the beginning of 2024 have already received notifications from the State Tax Service about the mandatory submission in 2025 and outlining the penalties for non-compliance.
Rules in Ukraine Are Governed by the Following Laws:
Finevolution submitted full and abbreviated CFC reports in 2024. We also recommend submitting them for 2025. This is because our clients who registered a company in early 2024 have already started receiving official letters from the State Tax Service reminding them to submit CFCs in 2025 and describing the penalties that may be imposed for failure to do so.
You should start preparing early because the CFC is not a simple filing of an annual declaration but a complex, multi-level financial report (or zero if the company did not conduct any activities) on the financial results of your Controlled Foreign Company. We strongly recommend that you do not postpone this issue until mid-April, as, in our experience, gathering all necessary financial information takes between 2 to 4 weeks.
Ukrainian CFC in 2025, what to consider?
Here is the answer and a list of what you will need to prepare for Controlled Foreign Companies 2025:
- Pay attention to the deadlines. According to Art. 39-2.5.2. of the Tax Code of Ukraine, you must obtain duly certified financial statements for your company to be on time. The deadline for submitting the CFC report is 30.04.2025
- If you have old CFCs for 2022-2023, now is the time to obtain comprehensive financial statements for them.
- If you have inactive controlled foreign companies (those that exist only on paper and have no financial activity) now is the best time to liquidate them and reduce future reporting obligations.
The first reporting (tax) years are 2022 and 2023. If you registered a CFC in 2024, you had to submit a notification to the CFC within 60 days from the date of registration. If you have not done so, we recommend that you do so. Also, if you registered a company in 2023, you must submit a report in 2025. This is an important aspect to consider when planning your business activities.
Given that the reports must contain detailed information on the company’s financial results and are submitted simultaneously with the annual property and income tax return or income tax return, preparation for this process requires considerable time and attention. Also, please note that company reports prepared in languages other than English require translation. The reports are translated by accredited agencies, and the translation process also takes time, so you should take this into account. The deadline for submitting the report to the CFC is April 30, 2025.
