Ukraine to share tax data with U.S.

The Cabinet of Ministers of Ukraine has approved the bill on ratification of the agreement between the Ukrainian and the U.S. governments regarding the implementation of the Foreign Account Tax Compliance Act (FATCA), according to which Ukraine will share tax data with the United States.

The exchange of information will so far be unilateral, that is, data will be forwarded from Ukraine to the United States. But in the future, the Ukrainian side will be able to hold consultations on amending the agreement to introduce a bilateral exchange, the Ukrainian finance ministry's press service said on September 9.

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The intergovernmental agreement with regard to the FATCA requirements was signed in Kyiv on February 7, 2017. Following this, amendments to Ukrainian legislation were developed, namely to Law "On Banks and Banking Activities" regarding the procedure for disclosing bank secrets and to Law "On the Depository System of Ukraine" regarding access to information contained in the depository accounting system.

UNIAN memo. The United States Foreign Account Tax Compliance Act (FATCA) entered into force on July 1, 2014. Its main goal is to prevent tax evasion by American citizens who work in other countries. The law requires foreign banks and other financial institutions to provide relevant information about customers, individuals and legal entities to the Internal Revenue Service (IRS).