Have you established or acquired a foreign company, changed your interest or ceased control? We will help determine whether the State Tax Service must be notified, review the grounds and deadlines. We will prepare a CFC notification and support its submission within the agreed scope.
The service is required for owners and co-owners of foreign companies and persons who exercise actual control over a business abroad. We assist when establishing a company, acquiring or selling an interest and changing the control structure. We separately consider errors in a notification and missed deadlines.
Prikhodko & Partners analyses corporate documents and the circumstances of control, determines the grounds for notification and the date from which the deadline is calculated. We review the data required to complete the form and explain the subsequent CFC reporting obligations.
You receive a clear action plan, a prepared form and support with submission as agreed. Advance review helps identify discrepancies in documents and reduce the risk of errors and repeated corrections.
A CFC notification informs the tax authority about events defined by law concerning participation or control in a foreign business. Before completing the form, we review the person’s residence status, ownership structure and documents confirming the relevant event.
During the consultation, we determine who holds the corporate rights, who makes decisions and what changes have occurred. For multi-level structures, we analyse the entire ownership chain. More information about comprehensive support for controlled foreign companies is available on a separate page.
We discuss the structure and documents remotely. We agree on the list of materials, the channel for transferring them and access to corporate information. After the analysis, we explain our conclusions and determine further support. There is no need to provide your personal electronic signature key or password for the consultation.
We review notification obligations in the following situations:
A change in ownership interest should be assessed together with the person’s status as a controller. We determine whether control arises or ceases and which specific statutory ground applies. The same percentage interest in different structures may require different assessment.
These are materials for legal analysis. We determine the scope of documents based on the circumstances; not every document is a mandatory attachment to the notification.
| Situation | What we review | Documents and data for analysis |
|---|---|---|
| Acquisition of an interest | Size of the interest, date of transfer of rights | Agreement, extract, ownership structure |
| Sale or transfer of management | Whether control has ceased | Agreement, resolution, documents confirming authority |
| Error in the notification | Nature of the discrepancy and submission status | Submitted form, receipts, correct information |
The deadline depends on the date of the event. Subparagraph 39².5.5 of the Tax Code of Ukraine provides for submission of the notification within 60 days from the date of the relevant acquisition or disposal, commencement or cessation of actual control. When corporate rights are acquired, the date is determined taking into account the legislation of the company’s country of registration — this is explained by the State Tax Service in its guidance.
The date of the agreement, the registry entry and the actual transfer of authority may not coincide. A lawyer compares these circumstances in order to correctly determine the relevant ground and complete the form. Where there are links with several countries, we separately review tax residence; on this topic, see the article on obtaining a Ukrainian tax residence certificate.
The notification does not replace annual CFC reporting. After submission, we explain the next obligations and the documents that should be retained. Practical risks of an international structure are considered in the article “Offshore Does Not Mean Protection: What Do Banks Actually Check?”.
A properly prepared notification begins with understanding your corporate situation. We help link changes in a foreign business to specific actions in Ukraine: determine the relevant ground, verify the date and reconcile the information for submission.
You receive consistent support and an explanation of the next steps. Submit a request — we will analyse the available documents, determine the priority tasks and agree on preparation of the CFC notification.
A CFC is a controlled foreign company that is under the control of a Ukrainian tax resident. This may be an ordinary company in Poland, Estonia or another country: the rules are not limited to offshore companies. In cases defined by law, they also cover arrangements without legal personality.
To reach a conclusion, residence status, ownership interests and actual control are reviewed. The owner’s citizenship or the company’s address alone does not provide a complete answer as to CFC obligations.
A controlling person may be an individual or legal entity that is a resident of Ukraine. In addition to an interest exceeding 50%, there is a criterion of more than 10% where Ukrainian residents collectively own 50% or more. A separate ground is actual control exercised independently or jointly with related persons who are Ukrainian residents.
Therefore, a smaller interest does not exclude controller status. Indirect ownership and statutory exceptions are also taken into account, including participation through a Ukrainian legal entity that itself fulfils the controller’s obligations.
The grounds are defined by subparagraph 39².5.5 of the Tax Code of Ukraine. In particular, this includes acquisition of an interest or commencement of actual control resulting in recognition as a controller, as well as disposal or cessation of control resulting in loss of such status. Separate events are provided for arrangements without legal personality.
The notification must be submitted within 60 days from the date of the relevant event. When corporate rights are purchased, the date of their acquisition is determined under the legislation of the company’s country of registration, so the date of signing the agreement is not always the correct starting point.
The notification concerns a specific event relating to participation or control. The annual report discloses information about the CFC for the relevant period, including financial indicators, and is submitted under different rules. These documents do not replace one another.
For the notification, corporate information and evidence of the event are primarily required; completion of annual financial statements does not determine the submission deadline. Therefore, the notification should not be postponed until the end of the financial year. Preparation of the annual report is agreed separately.
It is advisable to seek assistance immediately after identifying the problem. First, the submitted form, receipts and documents are reviewed in order to distinguish an error in details from an incorrect determination of the event. The State Tax Service explains the possibility of submitting a corrected notification with an explanation of the reason in field 24.
If the deadline has been missed, the correct date and procedure for fulfilling the obligation are determined, while the consequences are assessed taking into account the applicable transitional rules. Correcting the form in itself does not guarantee the absence of liability.
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Describe the taskKyiv City, 2 Mechnikova Street, Business Center "Parus", 10 th floor
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Kyiv City, 2 Mechnikova Street, Business Center "Parus", 10 th floor
Kyiv City, 2 Mechnikova Street, Business Center "Parus", 10 th floor
Kyiv City, 2 Mechnikova Street, Business Center "Parus", 10 th floor
Kyiv City, 2 Mechnikova Street, Business Center "Parus", 10 th floor
Founder of the company
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