On December 3, 2019, as part of the implementation of Agreement between the Government of Ukraine and the US Government on improving tax compliance and applying the provisions of the Law on Foreign Account Tax Compliance Act (FATCA), two Laws were adopted – No. 2102 and No. 2103 which make ammendments on :
– the Law of Ukraine “On Banks and Banking” in terms of the procedure for disclosing banking secrecy;
– the Law of Ukraine “On the Depository System of Ukraine” regarding access to information in the depository accounting system;
– the Tax Code of Ukraine in terms of definitions (reporting account and its owners, financial agent and financial account; features of reporting on accounts, etc.)
The above-mentioned laws will automatically provide information to the US tax service regarding accounts opened by US taxpayers in Ukrainian financial institutions.
At the moment, it is assumed to exchange only unilaterally – regarding US taxpayers, but it is expected that in the future Ukraine will also be able to obtain information about its taxpayers who have accounts in US financial institutions.
Thus, the adoption of the above-mentioned Laws is another step towards Ukraine’s accession to the global trend of automatic exchange of tax information.