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Penalties by law 466 (project 1210) Back

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Hunting for controlled foreign companies (CFC).

Today, only dividends are taxed, and from 2021 even retained earnings are taxed.

You need to prepare for change now!

What are the penalties for business in the future in 2021 under the new Law № 466-IX (Law “On Amendments to the Tax Code of Ukraine to improve tax administration, eliminate technical and logical inconsistencies in tax legislation”, signed by the President on 21.05.2020)?

The norms of the Tax Code of Ukraine on fines will be significantly updated.

The fine for conducting non-resident activities through a representative office that is not registered will cost UAH 100,000.

And failure to submit a report on the CFC will cost – 630.6 thousand UAH.

What is important to know: even if you pay the fines, the obligation to submit a report on the CFC and supporting documents provided for in Article 392 of the Tax Code of Ukraine remains.

If you do not report the CFC within 30 calendar days following the last day of the deadline for payment of fines, each calendar day of delay will cost you 5 times the subsistence rate. The fine is limited to 300 subsistence rates.