First CRS exchange: with which countries will Ukraine exchange financial information?

In an era of increasing international economic ties, financial transparency is becoming a key factor in maintaining economic stability and preventing financial crime. In this context, the automatic exchange of financial information according to the CRS standard (Common Reporting Standard) is becoming an important tool for ensuring tax transparency and combating tax evasion.

Ukraine, striving to integrate into the global economic community and meet international standards, is actively introducing mechanisms for the automatic exchange of financial information with other countries. The introduction of CRS into Ukrainian legislation and the practice of data exchange with foreign partners open new horizons for cooperation.

In this article we will look at the details of Ukraine’s first automatic CRS exchange, which countries will be connected to the auto exchange, and what this means for Ukrainian taxpayers in general.

First automatic exchange of financial information

Ukraine will begin its first automatic exchange of financial information in accordance with the CRS standard in the current year 2024. This is part of the country’s commitment to the EU integration process, which aims to increase the transparency of tax reporting.

The first reporting period covers the period from July 1, 2023 to December 31, 2023 , and data exchange will take place in 2024. Information to be exchanged will include data on non-resident accounts, account balances at the end of the year or when the account was closed, total amounts accrued or paid, and other financial information depending on the type of account.

The first exchange will include data on financial accounts of Ukrainian citizens abroad and citizens of other countries in Ukrainian banks. This applies not only to individuals, but also to companies and other organizations controlled by accountable persons or having passive income (interest, dividends, royalties). For more information about the auto exchange process itself , read our article “CRS exchange starts in Ukraine: how to prepare? “.

List of countries for CRS auto exchange purposes

Recently, the State Tax Service of Ukraine (STS) published a list of jurisdictions with which Ukraine will exchange financial information about accounts under the CRS Multilateral Agreement (Common Reporting Standard). Thus, the list includes 118 jurisdictions with which Ukraine will automatically exchange financial information in 2024:

1. Australia
2. Austria
3. Azerbaijan
4. Albania
5. Anguilla
6. Andorra
7. Antigua and Barbuda
8. Argentina
9. Aruba
10. Bahamas
11. Barbados
12. Bahrain
13. Belize
14. Belgium
15. Bermuda
16. Bulgaria
17. Brazil
18. Brunei Darussalam
19. Vanuatu
20. Hungary
21. Virgin Islands
22. Ghana
23. Germany
24. Guernsey
25. Gibraltar
26. Hong Kong (China)
27. Grenada
28. Greenland
29. Greece
30. Georgia
31. Denmark
32. Jersey
33. Dominica
34. Israel
35. India
36. Indonesia
37. Ireland
38. Iceland
39. Spain
40. Italy
41. Kazakhstan
42. Cayman Islands
43. Canada
44. Qatar
45. Kenya
46. Cyprus
47. China
48. Colombia
49. Costa Rica
50. Kuwait
51. Cook Island
52. Curacao
53. Latvia
54. Liberia
55. Lebanon
56. Lithuania
57. Liechtenstein
58. Luxembourg
59. Macau (China)
60. Malaysia
61. Maldives
62. Malta
63. Morocco
64. Marshall Islands
65. Mexico
66. Moldova
67. Monaco
68. Montserrat (Britain)
69. Nauru
70. Nigeria
71. Netherlands
72. Niue island
73. New Zealand
74. New Caledonia
75. Norway
76. United Arab Emirates
77. Oman
78. Isle Of Man
79. Pakistan
80. Panama
81. Peru
82. Poland
83. Portugal
84. Republic of Mauritius
85. Rwanda
86. Romania
87. Samoa
88. San Marino
89. Saudi Arabia
90. Seychelles
91. Saint Vincent and the Grenadines
92. Saint Kitts and Nevis
93. Saint Lucia
94. Singapore
95. Sint Maarten
96. Slovakia
97. Slovenia
98. United Kingdom
99. Thailand
100. Turks and Caicos
101. Türkiye
102. Uganda
103. Uruguay
104. Faroe islands
105. Finland
106. France
107. Croatia
108. Montenegro
109. Czech
110. Chile
111. Switzerland
112. Sweden
113. Ecuador
114. Estonia
115. South Korea
116. South Africa
117. Jamaica
118. Japan

Let us indicate that this list of jurisdictions for the purposes of automatic exchange of financial information according to the CRS standard will be applied only in 2024 and must be updated every year. This update allows Ukraine to meet changing international requirements and include new partner countries for the effective exchange of information on the financial accounts of citizens and residents.

What does the publication of the list of CRS jurisdictions mean for Ukrainians?

The publication of the list of jurisdictions for automatic CRS exchange of financial information represents a significant legal event for Ukraine and its citizens. In accordance with this international standard, information on financial accounts of Ukrainian residents opened in countries included in the specified list will be automatically transmitted to the Ukrainian tax authorities.

This exchange of information includes data on both personal accounts and accounts of controlled foreign companies (CFCs), that is, it will affect both personal finances and business finances. Accordingly, the Ukrainian tax service will have access to detailed information about account balances, income, interest paid and other financial transactions associated with these accounts for the relevant reporting period.

Of course, such an exchange will increase tax transparency and the efficiency of tax risk management, but for Ukrainian citizens directly this means strong control by the tax authorities and a more detailed audit of their tax obligations abroad, for which, of course, you need to be prepared. If inconsistencies or tax evasion are detected, the tax service will have legal grounds to conduct additional tax audits and apply appropriate sanctions in accordance with Ukrainian tax legislation.

Recommendations for managing financial affairs during CRS exchange

As a result, the introduction of automatic exchange of financial information according to the CRS standard requires citizens and residents of Ukraine to pay special attention to the management of their financial affairs. Therefore, it is important to follow certain recommendations for effective management of your finances:

1. It is recommended that you should review your financial assets and liabilities on a regular basis. This includes reviewing account balances, investment portfolios and other financial instruments that may be subject to CRS information exchange.
2. Ensure that all income received from financial assets abroad is correctly declared and paid in accordance with Ukrainian tax laws. This includes personal income tax and other tax obligations.
3. In case you have financial assets or accounts abroad, it is recommended to clarify your tax residence status and comply with the relevant tax obligations in both jurisdictions.
4. Keep abreast of changes in tax and financial legislation in Ukraine and in CRS partner countries. This will help you stay updated with current requirements and adapt your financial strategies to suit the changing environment.
5. If necessary or if any inaccuracies are identified, immediately seek advice from specialists in the field of tax law. For example, our lawyers will help you develop strategies for managing tax obligations and minimizing tax risks in the context of international exchange of CRS information.

These recommendations will allow you to effectively manage your finances in the context of the introduction of automatic exchange of financial information according to the CRS standard, ensuring compliance with legislation and minimizing tax risks, and, if necessary, the lawyers of Azola Legal Services are always ready to analyze your case and provide extensive individual recommendations on your business or personal finances.