Ukrainian resident entrepreneurs who hold interests in foreign companies will face the year of 2026 as a key one in terms of their controlled foreign company (CFC) reporting. The Tax Service of Ukraine has intensified its efforts to cover this gap so that much more is at stake for potential violators as many experts report that this year should be the first one for the tax service to start its inspections factually and seriously. The State Tax Service has officially reported that, as of 30 April 2025, more than 60% of legal entities and individuals have not filed their CFC reports for the previous period – a clear indication of the scale of the problem and the attention paid by regulatory authorities. Let's see how to act correctly and avoid significant financial losses.
Tax Law
Would you like your business to have no problems with fiscal authorities or to mitigate negative tax consequences? Our team of lawyers will help protect your money from tax collectors acting in bad faith.
We can offer extensive practical expertise in taxation, having deep insight into the regulatory framework and cooperating on an ongoing basis with professional consultants focusing on accounting, auditing, and tax. Availing ourselves of such tools, we achieve a positive outcome in most cases. You can see this for yourself by starting cooperating with Alva Privacy on a mutually beneficial basis.
Tax legal support from Alva Privacy
Alva Privacy Law Firm (Kyiv, Ukraine) provides its services focusing on the following key areas:
- Legal advising by a tax attorney.
- Appealing against resolutions of tax authorities.
- Settlement of tax disputes.
We are in a position to deliver good results because we monitor changes in the applicable laws on a regular basis, scrutinize the case law, and tailor our skills, facilitating us to interact efficiency with regulatory authorities and handle legal proceedings. All this combined makes us strong when it goes to protecting the interests of our clients, interacting effectively with corporate accountants and financiers, and external auditors and accounting and tax experts engaged by our law firm.
Services of tax attorneys
It is a common mistake to think that a court appeal against the resolution is the most effective remedy available to protect your right. On the contrary, it would be most appropriate if you prevented the fiscal authorities from making unlawful decisions at all. However, you need a specialized lawyer and auditor timely involved to deal with tax collectors violating the laws during their tax audits.
If you doubt your in-house lawyer's ability to defend effectively your financial interests when interacting with fiscal authorities, we recommend you contact our tax law attorney. You surely save your money if you engage a team of professionals from the very outset.
Having signed a memorandum with the International Monetary Fund, Ukraine has committed itself to introducing VAT registration for individual entrepreneurs whose annual turnover exceeds UAH 1 million and thus to abolishing the simplified taxation system. Could it be a ‘time bomb’ that can disrupt the IT and business sectors in Ukraine? Indeed, it may be so mostly for IT freelancers, online stores, service industry, consultants, second and third group individual entrepreneurs engaged in the provision of services. As the tax burden is expected to increase, they will bear additional expenses of UAH 200 to 300 thousand annually for administration purposes only. This has already caused a wave of large-scale protests in such IT communities as Reddit, Telegram, and LinkedIn. This reform is a key precondition for the IMF tranche, but the price the business is expected to pay is enormous.
