Ukraine received data on the accounts of its citizens abroad

Ukraine has taken a step towards increasing the transparency of financial transactions and strengthening the fight against tax evasion. It is about the fact that the State Tax Service received data on the accounts of its citizens abroad.

This was reported by the press service of the Ministry of Finance on Friday, October 4.

Data about accounts of Ukrainians abroad

Ukraine carried out its first international automatic exchange of information according to the Common Reporting Standard.

"As part of this exchange, the State Tax Service of Ukraine transferred information on the financial accounts of non-residents to the tax authorities of the jurisdictions — exchange partners, and also received data on the accounts of tax residents of Ukraine from foreign competent authorities," the message stated.

The exchange concerned information about accounts maintained by financial institutions (banks, insurance and investment companies, etc.) and owned by residents of partner countries. In particular, the following data were transmitted:

•    name of the account holder;
•    address;
•    tax residency;
•    taxpayer identification number;
•    date and place of birth;
•    information about the financial institution;
•    details of the account, including the balance at the end of the reporting period and total dividends, interest or other income.

The National Revenue Strategy states that integration into the international system of automatic data exchange on financial accounts contributes to the formation of a more transparent tax environment and the improvement of Ukraine's reputation as a reliable and equal partner in international tax relations.

Obtaining by Ukraine access to information about the foreign financial assets of its residents according to the CRS standard will allow to:

• strengthen control over the timeliness and completeness of the taxable income declaration;
• identify undeclared income to reduce tax evasion by individuals;
• increase the effectiveness of the rule application on taxation of controlled foreign companies;
• get an additional source of tax information during the implementation of indirect methods of control over the taxation of individuals.

"This step is part of the obligations of Ukraine in the process of integration into the EU and is aimed at increasing the transparency of the tax sphere. Thanks to the exchange, Ukraine will be able to fight tax evasion more effectively, which will contribute to additional tax revenues, and therefore to the economic stability and development of the country" — the message stated.

It should be reminded that the Minister of Finance of Ukraine, Serhiy Marchenko, said that the increase in taxes is a forced measure. Although this decision will affect business, he noted that there are practically no other options left.

In addition, the average salary in the central authorities exceeded 50 thousand hryvnias (1215 dollars)  in July 2024, which is 2.5 times more than the official average salary in Ukraine. At the same time, there is no clear correlation between the level of salaries and the number of filled vacancies in state departments.