Since 2022, Ukraine has been undergoing integration into the international system for the automatic exchange of financial account information under the Common Reporting Standard (CRS).
CRS (Common Reporting Standard) is a global reporting standard developed by the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial information between tax authorities of different countries. It enables governments to track the financial accounts of their tax residents abroad and combat tax evasion.
The first CRS data exchange in Ukraine took place in October 2024. The Ukrainian tax authorities received financial data from partner jurisdictions and, in turn, provided information on foreign tax residents holding accounts in Ukrainian banks.
What information is transmitted under CRS?
- Account balance at the end of the year
- Total incoming and outgoing transactions
- Dividends, interest, and other income
- Account holder details (name, address, tax identification number)
- Financial institution where the account is held
Who is affected by CRS Exchange in Ukraine?
CRS applies to both individual and corporate accounts. Business owners and investors need to clearly understand that hiding income and account transactions from CRS is impossible, so it is essential to prepare in advance for automatic exchange:
- Corporate clients with accounts in international payment systems and excess funds in these accounts. Financial institutions will be required to report non-resident accounts, which will necessitate additional compliance measures
- Companies operating in international markets. Your financial activities will become more transparent, which may require a review of existing financial practices
- Investors and business owners collaborating with EU markets, investing in real estate, and other assets
