FOR THE ATTENTION OF DEPOSITORS/CLIENTS WHO HAVE THE STATUS OF USA TAX RESIDENCY
In accordance with subparagraph 69.8.3. of Article 69 of the Tax Code of Ukraine, financial agents are required to submit a report on financial accounts to the central executive body implementing state policy by September 1 each year.
The State Tax Service of Ukraine, which is the competent authority for the purposes of automatic exchange of information under the FATCAAgreement , is obliged to submit to the US Internal Revenue Service a report for the 2020 tax year and information for 2014-2019 by September 30, 2021. Given that the Code establishes a reporting deadline for financial agents, which provides the competent authority with a one-month period to process and verify the information provided, the deadline for financial agents to submit a report on accountable accounts is September 1, 2021.
In this regard, questionnaires have been developed to identify US tax residents, who, in turn, will need to fill out the questionnaire form available at https://www.irs.gov/ for further submission of reports on accountable accounts by financial agents.
All depositors/clients who have the status of a U.S. tax resident are requested to fill out the questionnaire and submit it to the depository institution by August 1, 2021.
In accordance with FATCA, individuals, sole proprietors and self-employed persons engaged in independent professional activities are recognized as US tax residents if one of the following conditions is met:
1) The individual is a U.S. citizen;
2) The individual has a permanent residence permit (Green Card);
3) An individual meets the criteria of "early stay" (stay in the United States for at least 31 days during the current calendar year and at least 183 days during the last 3 years, including the current year and the two previous years. At the same time, all the days spent by the client in the United States are taken into account for the current year, 1/3 of the days for the previous year, and 1/6 of the days for the year before last).
According to FATCA, legal entities are recognized as US tax residents if one of the following conditions is met:
1) The legal entity is registered/established in the United States;
2) The legal entity is not registered/established in the United States and its owners/participants, who directly or indirectly own more than 10% of the shares in the legal entity, include individuals who are US tax residents;
3) Other, in accordance with the requirements of FATCA.