Social Assistance, Apartments and Business Abroad: What Do Tax Officers Ask Ukrainian Refugees About

Starting from this year, tax authorities will start collecting data on non-resident accounts in Ukrainian banks to transfer this information to their foreign colleagues. Fiscal officers of other countries will do the same with regard to the accounts of Ukrainians in local financial institutions. The innovation will primarily affect the interests of Ukrainian refugees who receive social assistance, have managed to start a business or find a job in the EU.

“Minfin” media turned to specialists in the tax and legal fields for advice on aspects that Ukrainian refugees abroad should pay attention to.

Expperts emphasized the potential vulnerability of the refugee category. Nevertheless, it is not necessary to be afraid of cooperation with tax authorities. We are publishing the comments of the K.A.C. Group leading lawyer Iryna Matsapura on whether there is a possibility of facing risks of non-compliance with provisions on financial exchange.

It is not necessary that the exchange of information will take place already in 2023. According to the draft law, Ukrainian financial institutions were to apply the CRS General Reporting Standard for the purposes of meeting the requirements of the CRS Multilateral Agreement from January 1, 2023. However, it should be taken into account that the draft law introducing these obligations is still being prepared for the second reading.

“Before the specified date, the norm was not adopted, so these dates may be changed in the final version,” reminds Iryna Matsapura.

It is also not set in stone that this change will affect Ukrainian refugees deeply.

First, it is known that conceptual amendments are being prepared to the draft law before its consideration in the second reading. It is possible that they will touch upon the issues of information exchange concerning Ukrainians who left abroad after February 24, 2022.

Secondly, as Iryna notes, in the conditions of martial law introduced in Ukraine, foreign jurisdictions often grant special status and clarification, and under such conditions Ukrainian refugees are not granted tax residency in these countries. Experts advise to follow the relevant clarifications in the country of refuge.

Read the full article (in Ukrainian): Соцдопомога, квартири та бізнес за кордоном: про що спитають наші податківці біженців