Submission of CFC (Controlled Foreign Company) reports

Successful submission of a CFC report requires careful attention and a thorough understanding of the finer details.

First and foremost, you need to correctly determine whether you have the status of a controlling person, which specific foreign companies fall under the CFC rules, and which notifications and reports must be submitted. This is followed by the process of gathering the necessary financial and corporate documents, reconciling the data, preparing the reports in the required format and, finally, submitting them via electronic services whilst obtaining all receipts.

The report must include all details, information about the non-resident company, the nature and extent of control, and the ownership structure (if applicable). In legal practice, it is precisely these aspects that typically lead to the highest number of errors and subsequent delays in submitting the CFC report. It is easy to overlook facts that seem unimportant at first glance – for example, differences in the financial year – which can lead to missed deadlines, fines, or other situations that are far from pleasant for you. CFC reporting should be prepared as a separate process with strict monitoring of deadlines and supporting documentation.

To simplify this process and avoid unnecessary stress, our company, First Legal, offers a CFC reporting service in Ukraine in the form of managed support, ranging from the initial review to the actual submission of the report and monitoring its acceptance.

We work with both clients in Ukraine and Ukrainians living abroad, adapting most procedures for remote execution. And all this is always accompanied by a clear list of documents, agreed deadlines and communication in a format convenient for you.

 

The cost of services starts from 12,000 UAH*, which includes the preparation and submission of the CFC notification, as well as the preparation and submission of the abridged report.

*The final cost depends on the number of CFCs, the complexity of the ownership structure, the availability of financial statements and/or an audit, the need for additional calculations, the requirement to submit other types of reports to the State Tax Service, and the deadlines.

A preliminary analysis of the structure and documents is required to determine the cost of preparing a full CFC report.

 

Turnaround time – from 5 working days*

*Turnaround times depend primarily on the availability of the CFC’s financial statements and the speed at which documents are received from the foreign jurisdiction. Approximate times: initial review and work plan – 1–3 working days; preparation of the submission package – from 5 working days if financial statements are available; for multiple CFCs or complex structures – to be discussed individually.

 

What is included in the CFC reporting service provided by First Legal:

  • Identification of the controlling person and the list of CFCs (direct, indirect or de facto control);
  • Verification of obligations regarding notifications of the acquisition/loss of control and the deadlines for their submission (in particular, 60 days in specified cases);
  • Selection of the reporting format (abridged or full) and scheduling of deadlines, including for the submission of a full report following an abridged one;
  • Preparation of the non-resident’s financial statements, key indicators, taxes paid abroad, dividends and other payments;
  • Analysis of possible 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 current requirements regarding the form and procedure for completion);
  • Monitoring of submission results, receipt of acknowledgements and verification of the correct acceptance of the report;
  • Comprehensive support following submission, clarifications, preparation of explanations and responses to queries from the supervisory authority (where necessary).

Benefits of working with First Legal

  • Practical focus on CFCs: control, obligations, deadlines, risks and supporting documentation;
  • Comprehensive support, from reviewing the structure to submitting and monitoring the acceptance of the report;
  • Full adaptation to remote working arrangements where necessary and strict monitoring of deadlines;
  • Confidentiality and adherence to legal professional privilege;
  • Clear scope of work and terms of cooperation set out in the contract.

Submit your enquiry and we will contact you for an initial consultation and further support. No worries or oversights – we’ll take care of it all.

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