NSSMC established a list of financial agents according to the requirements of FATCA

National Securities and Stock Market Commission (NSSMC) approved a draft Resolution “On the Establishment of a List of Non-bank Financial Institutions, which are Obliged to Act as Financial Agents” at its meeting on August 18, 2020.

The document contains a list of non-banking financial institutions, which should act as financial agents in accordance with international agreements on information exchange for tax purposes, the binding nature of which has been accepted by the Verkhovna Rada of Ukraine, or concluded on the basis of inter-agency agreements, and should provide information on the affiliated accounts in conformity with the Agreement between the Government of Ukraine and the Government of the United States of America for purpose to improve the implementation of tax regulations and provisions of the Law of USA Foreign Account Tax Compliance Act (FATCA), and other international agreement, containing provisions on information exchange for tax purposes.

The specified list includes professional participants of stock market, that carrying out:

–           the activities of securities trading – the brokerage;

–           the activities of securities trading – the securities management;

–           the depositary activity – the depositary activities of the depositary institution,

–           except those that meet the criteria set up in Annex II of the above-mentioned agreement.

The draft was developed according to the Article 8, paragraph 33 of the Law of Ukraine “On State Regulation of the Securities Market of Ukraine”, Article 14, paragraph 14.1, subparagraph 14.1.2571 of the Tax Code of Ukraine.

For the comments and suggestions the draft Resolution of the NSSMC is available on the official website at the following link: https://www.nssmc.gov.ua/document/?id=10784841

In this way, the NSSMC agreed the draft Order of the Ministry of Finance of Ukraine on the Procedure of Completion and Reporting on the Affiliated Accounts by Financial Agents, published at the following link: https://tax.gov.ua/diyalnist-/regulyatorna-politika-/regulyatorna-politika/2020-rik/74649.html. The document indicates that the financial agents in order to report on the affiliated accounts should connect to the portal IDES (International data exchange service). The IDES user manual is available on the website of the United States Internal Revenue Service https://www.irs.gov/businesses/corporations/fatca-ides-resources-and-support-information.