Fines for a controlled foreign company (CFC)

Penalties for Violating CFC Reporting

Failure to submit a notification about acquiring shares in a CFC: A fine of 300 minimum wages for working-age persons (as of 01.01.2023 — 805,200 UAH).
Failure to submit a CFC report: A fine of 100 minimum wages (268,400 UAH as of 01.01.2023).
Late submission of the report: A fine of one minimum wage (2,684 UAH) for each day of delay, but no more than 50 minimum wages (134,200 UAH).
Failure to include CFC information in the report: The fine can reach 1,000 minimum wages (2,684,000 UAH as of 01.01.2023).
Failure to submit the report within 30 days after the deadline: A fine of five minimum wages (13,420 UAH as of 01.01.2023) for each day of delay.

How exactly we help

Avitar provides a full range of services to help you avoid penalties related to CFC:

Compliance analysis: We check whether CFC rules apply to you and what fines may be imposed for violations.
Preparation of reports and notifications: We help you correctly prepare the CFC report and the notification about acquiring shares in a CFC, which will prevent fines for unconfirmed or late information.
Minimizing penalties: If fines have already been imposed, we help reduce them by correcting errors in the reports.
Reporting consultations: We provide expert consultations on the correct form and deadlines for submitting reports.

Avitar Will Help

Analyze whether CFC rules apply to you;
Determine whether there are grounds to exempt CFC profits from taxation in Ukraine;
Develop a working model that will help reduce the tax burden;
Analyze the financial statements of CFC and determine the adjusted profit subject to taxation in Ukraine;
Understand CFC reporting;
Prepare the tax declaration on assets and income;
Prepare the CFC report and notification.

Why Choose Us?

Expertise and Experience:

Avitar has years of experience in supporting CFC reporting, which allows us to efficiently help clients avoid penalties.

Individual approach:

We offer solutions that take into account all the nuances of your situation to minimize the risk of fines and sanctions.

Speed and efficiency:

We quickly and securely prepare reports and submit them on time, considering all deadlines and requirements.

Transparency and support:

Our clients are always informed about all stages of the process, receiving full information about the progress of the case and possible consequences.

Case Study

One of our clients — a Ukrainian holding company owning several foreign companies. After analyzing its financial statements and CFC documents, we discovered that the company had not submitted a report regarding shares in a foreign company, which led to a fine. We helped minimize the penalties by submitting an amended notification and correcting the information. Thanks to our help, the fine was reduced to a minimum, allowing the company to preserve significant financial resources.

If you have questions about CFC reporting or want to avoid penalties, contact Avitar. Our experts are ready to provide the necessary support to protect your business from tax risks.

What Clients Say About our Work

Avitar has been supporting our company Softcube since 2018. All this time, their advice was professional, comprehensive, and accurate. Avitar team has excellent expertise in GDPR and copyright law. It is a pleasure to work with them

Oleg Lesov, CEO Softcube

Дмитро Будорін, CEO та Co-founder Hacken

Efficient and effective. Our team has spent min time for explaining our needs and we received tailored and prompt work result. Highly recommend

Dmitry Budorin, CEO Hacken

They're very good in GDPR compliance and user agreements. Our Bookimed team mates are satisfied dealing with Avitar

Evgeniy Khotyanov, CEO Bookimed

The guys are very cool! Minimum of violence against the client, maximum result. In case they are not capable of doing the job, they will find who will - and this is very valuable. Highly recommended!

Nikita Fursov, Founder at 1Dea.me

Developed documents for a web platform that works in the US and Ukraine. Everything is high quality. We will contact more!

Arthur Kritsak, Founder of InReepublic

Before meeting the guys, their recommendations. In my view, the development and scaling of the business was, it was necessary to rush, and then we will deal with putting in order the processes and documents

Eugene Kuzmin, CEO MORZA.co

Fines of controlled foreign company (CFC)

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