Submitting Reports On CFCs (Controlled Foreign Companies)
Submitting a report on CFCs in Ukraine is not a matter of simply filling out a form and sending it off. First, you need to correctly determine whether you have the status of a controlling person, which foreign companies fall under CFC, and what notifications and reports must be submitted. Next, you need to collect financial and corporate documents, reconcile the data, prepare reports in the required format, and submit them via electronic services with receipts.
The report contains information about the non-resident company, the method and extent of control, the ownership structure, financial indicators, and grounds for possible exceptions (if any). Practice shows that errors most often arise in “small details” — share of participation, indirect ownership, joint control, differences in the financial year, or the absence of documents confirming the indicators. That is why CFC reporting should be prepared as a separate process with control over deadlines and evidence.
First Accounting provides CFC reporting services in Ukraine in the form of managed support — from initial verification to actual submission of the report and monitoring its acceptance. We work with both clients in Ukraine and Ukrainians abroad: most of the work can be done remotely — with a clear list of documents, agreed deadlines and communication in a convenient format.
Cost Of Services And Completion Time
The cost of services starts at UAH 12,000*
Completion time — from 5 working days**
**The deadlines depend primarily on the readiness of the CFC financial statements and the speed of obtaining documents from foreign jurisdictions. Approximately: initial review and work plan — 1–3 business days; preparation of the submission package — from 5 business days if financial statements are available; for multiple CFCs or complex structures — individually.
What is included in the CFC reporting service from First Accounting:
- Determination of the controlling person and the list of CFCs (direct, indirect or actual control);
- Verification of obligations regarding notifications of acquisition/loss of control and deadlines for their submission (in particular, 60 days in specified cases);
- Selection of the reporting format (abridged or full) and planning of deadlines, including for the submission of a full report after an abridged one;
- Preparation of the financial section: non-resident financial statements, key indicators, taxes paid abroad, dividends and other payments;
- Analysis of possible exceptions/exemptions and preparation of justifications for correct reflection in the report;
- Completion of the report and submission in electronic form separately for each CFC (taking into account the current requirements for the form and procedure for completion);
- Control of the submission result: receipt of receipts and verification of the correctness of the acceptance of reports;
- Post-submission support: clarification, preparation of explanations and responses to requests from the controlling authority (if necessary).
Advantages of working with First Accounting
- Practical focus on CFCs: control, responsibilities, deadlines, risks and supporting documents;
- Turnkey work: from checking the structure to submitting and monitoring the acceptance of the report;
- Convenient format for clients abroad: remote organisation of the process and monitoring of deadlines;
- Confidentiality and compliance with attorney-client privilege;
- Clear scope of work and recording of the terms of cooperation in the contract.