Procedure for International Exchange of Tax Information

On October 3, the Ministry of Finance Order No. 446 of Aug. 29, 2025, aimed at amending the Procedure for the exchange of tax information with the competent authorities of foreign states, entered into force.

The updated Procedure regulates the preparation and submission of outgoing requests, the receipt and processing of incoming requests, control over information exchange, spontaneous information exchange, and the interaction of the State Tax Service with competent authorities of other states.

During tax audits and reconciliations of taxpayers, there may be a need to confirm information stored outside Ukraine. In particular, this applies to cases where overdue receivables are established for a non-resident debtor by a resident.

In such situations, the STS prepares an outgoing request:

• There are grounds to believe that payments made to a resident of another state were not declared. If the recipient is an intermediary company acting in the interests of the beneficial owner of the income, does not declare income, does not submit financial statements, or is subject to a preferential tax regime in another state, the STS sends a request to verify the accuracy of the data.
• Discrepancies between the indicators in customs declarations and the actually recorded (imported) or shipped (exported) goods also constitute grounds for issuing an outgoing request. Similarly, cases of submission of incomplete or inaccurate information in tax returns trigger an outgoing request.
• If facts indicate that funds were transferred abroad for the purpose of laundering income obtained illegally, or there is a need to obtain information on transfer pricing control, controlled foreign companies, or to detail or identify data of a specific taxpayer resulting from automatic information exchange, the STS issues an outgoing request.
• Other situations in which information from competent authorities of foreign states is required for the implementation or application of the provisions of Ukrainian legislation, including international treaties, also fall under the procedure for issuing an outgoing request.

In addition, the STS independently transfers information to foreign authorities on its own initiative. This occurs when there are grounds to believe that taxes in another state have not been paid or have been paid incompletely.

The STS independently provides information:

• If a taxpayer enjoys full or partial tax exemption in Ukraine, which may affect taxation in another state, the information is transmitted without a request;
• If business operations between a Ukrainian taxpayer and a taxpayer of another state are conducted through one or more states in a manner that may lead to a reduction of tax liabilities in Ukraine or in the other state;
• If there are grounds to believe that the amount of tax liabilities has been artificially reduced by transferring profits between related enterprises, including within a group of companies.

In addition, information obtained from competent authorities of foreign states that may be useful for determining tax liabilities in that foreign state is transferred without a request.

Information may also be transmitted in the presence of any other data that could potentially assist competent authorities of foreign states in fulfilling their obligations.

The new Procedure ensures transparency and control over the exchange of tax information, clearly defines the cases for issuing outgoing requests and transferring data on the initiative of the STS, increases the efficiency of tax control, and reduces the risks of abuse in international transactions.

We will closely monitor further developments in this area and will report on this in future Legal News.