Common Reporting Standard (CRS) is an international standard for reporting and due diligence on financial accounts. This standard was implemented to combat tax evasion and ensure more transparent exchange of financial information between countries.
On August 19, 2022, the State Tax Service of Ukraine, as the country’s competent authority, joined the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information.
According to this agreement, Ukrainian banks are required to collect information about their clients’ financial activities and to conduct due diligence on financial accounts, including:
- individuals’ personal accounts
- accounts of the companies and their final owners (in certain cases)
- accounts of private funds and trusts.
The information is submitted to the State Tax Service of Ukraine, which automatically transmits this data to the tax authorities of other countries with which Ukraine has entered into agreements on automatic information exchange.
The CRS promotes increased transparency and efficiency of tax systems and enhances international cooperation on tax matters.
The CRS requirements, including rules for proper verification of client accounts, will come into effect in Ukraine from July 1, 2023.
PRAVEX BANK informs its clients that Article 39(3) of the Ukrainian Tax Code requires the Bank, as a reporting financial institution, to collect information on the tax residency status of account owners and to include this information in the reporting statements for CRS purposes. For their part, account owners are obliged to submit their self-assessment of CRS compliance to PRAVEX BANK and, in certain cases, respective self-assessments of their Controlling Persons.
A CRS compliance self-assessment document shall contain information on the tax residency status of account owners.
- If you are an owner of a personal or an entity account and a tax resident of a country other than Ukraine or the USA please familiarize yourself with a list of CRS compliance self-assessment forms and complete the appropriate form:
- If you are an individual, please provide the Individual Tax Residency Self-Assessment Form (CRS-I).
- If you need to submit a self-assessment document on behalf of an entity account owner, please provide the Entity Tax Residency Self-Assessment Form (CRS-E).
- If you are a controlling person of an entity (which is a passive non-financial organization), please provide the Controlling Person Tax Residency Self-Assessment Form (CRS-CP).
Submission and transmission of CRS compliance forms can be done electronically in a PDF format using a qualified electronic signature (QES).
Please note that, according to Article 39(3).2.2.1 of the Ukrainian Tax Code, account owners are required to inform PRAVEX BANK of any changes in their tax residency status for CRS reporting purposes or any changes in their controlling person status within 30 calendar days.
For more information and regulations on CRS, go to:
https://tax.gov.ua/baneryi/crs
https://www.mof.gov.ua/uk/crs-578
https://www.oecd.org/tax/automatic-exchange/common-reporting-standard
