Ukraine, U.S. ratify agreement on FATCA de-offshorization
The bill foresees that the Ukrainian banks will open information about the accounts of U.S. citizens in this country; Ukraine, on the other hand, will not be able to get the respective information about Ukrainian accounts in the States
The Verkhovna Rada of Ukraine has passed the document about ratification of the agreement with the U.S. on the FATCA de-offshorization. This document means that the Ukrainian banks will open information about the accounts of U.S. citizens in this country; Ukraine, on the other hand, will not be able to get the respective information about Ukrainian accounts in the States. But it will be able to consult with the American side and offer the exchange of information.
310 Ukrainian MPs supported the respective bill, with 226 necessary to pass.
Danylo Hetmantsev, the MP from Servant of the People party commented on the draft bill. “This is the mechanism that not only lets us open the information about taxpayers, about the incomes that they get on the territory of Ukraine, but also launch the mechanisms that would let our government and the Tax Service get the information about the incomes and assets of our citizens that they still hide beyond the border. These are the simple steps to de-offshorization, which we have so long talked about during the parliamentary and presidential election”, he said.
The law took effect in July 2014. The document contains requirements for foreign financial organizations, specifically, those concerning special agreement with the IRS, the U.S. tax service and those concerning control over the U.S. assets in Ukrainian organizations and informing the U.S. tax office.