Ukraine has joined the Addendum to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (hereinafter – Addendum to the CRS MCAA).

The Addendum to the CRS MCAA is an integral part of the Multilateral Agreement and provides an international legal framework for the exchange of an expanded scope of information in accordance with the updated Common Reporting Standard and due diligence procedures for financial account information (CRS).

For Ukraine, this means the ability to further receive more comprehensive and structured information from foreign tax authorities regarding the foreign financial accounts of Ukrainian tax residents. Such information will assist the State Tax Service authorities to:

• identify undeclared foreign income;
• more accurately identify account holders and controlling persons;
• enhance the quality of tax risk analysis;
• more effectively combat tax evasion and the transfer of income abroad;
• ensure equal tax conditions for taxpayers who voluntarily comply with their tax obligations.

The updated CRS was approved by the Organisation for Economic Co-operation and Development in 2023 following a comprehensive review of the standard, taking into account the development of the financial sector, the emergence of new financial products, and practical experience in its application. The amendments expand the scope of the CRS, clarify the composition of reportable information, and improve due diligence procedures.

In particular, the updated standard accounts for new financial products and instruments that can be used as alternatives to traditional financial products.

The Addendum to the CRS MCAA provides for the inclusion of additional information elements stipulated by the updated CRS into the international automatic exchange. It applies between the competent authorities that are signatories to it, subject to the established conditions and dates of application of the updated provisions.

Ukraine’s accession to the Addendum:

• provides an international legal framework for information exchange in accordance with the updated CRS;
• enables Ukraine to participate in the exchange of an expanded volume of information with partner jurisdictions that apply the relevant provisions of the Addendum;
• expands the information capabilities of tax authorities regarding control over foreign assets and income of Ukrainian residents;
• contributes to bringing Ukrainian legislation closer to international and European standards in the area of tax transparency and administrative cooperation.

At the same time, joining the Addendum does not introduce a new tax and does not entail public disclosure of financial account information. The received information is used by tax authorities for tax purposes specified by international treaties, adhering to confidentiality and data protection requirements.

Reference:

Ukraine joined the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information in August 2022. Since 2024, Ukraine has been participating in the international automatic exchange of information under the CRS standard.

In 2026, the Ministry of Finance updated the national rules for the application of the CRS in accordance with the amended international standard. Joining the Addendum to the CRS MCAA is the next step in implementing the updated standard in Ukraine.

Updating the CRS rules also contributes to aligning Ukrainian legislation with European Union law in the area of administrative cooperation and tax transparency, particularly taking into account the amendments introduced by Directive DAC8 (regarding the CRS).

The implementation of the updated CRS standard in Ukraine is carried out with the support of the European Union Public Finance Management Support Programme for Ukraine (EU4PFM).

Source: https://www.mof.gov.ua