On September 27, the Minister of Finance Oleksandr Danyliuk met with the representatives of the Organization for Economic Cooperation and Development (OECD) to discuss the implementation of the BEPS (Base Erosion and Profit Shifting - Action Plan to Combat the Fiscal Disclosure and Tax Derivation) and the accession of Ukraine to automatic exchange of information between fiscal authorities (AEOI standard).
This visit by OECD representatives launched the first joint program on the implementation of international standards for the exchange of information and events BEPS. The program will help Ukraine to implement new international tax standards, focusing on country reports and other minimum BEPS standards, as well as the standard for the exchange of information on the request and the automatic exchange of financial statements (the "Common Reporting Standard").
The Minister said that the Ministry had elaborated a detailed Roadmap for the implementation of the Minimum Standard of the BEPS Action Plan, and by the end of 2017, Ukraine intends to accede to the Multilateral Instrument (MLI). Through this tool, Steps 6 and 14 of the Minimum Standards for the BEPS Action Plan will be implemented, which will improve the mechanisms for combating the artificial use of the tax advantages of international conventions for the purpose of deriving tax-free profits. Appropriate changes will be made simultaneously in more than 60 existing international conventions on the avoidance of double taxation.
In addition, starting in 2020, the automatic exchange of information on non-resident financial accounts will begin according to the International Standard (Common Reporting Standard) developed by the OECD and approved by the G20. The first exchange of tax information will take place in 2019. "This date is quite realistic. We understand that by the time it is necessary to make appropriate amendments to the legislation and to ensure high standards of confidentiality and security of the data ", - said Oleksandr Danyliuk. Thus, Ukraine will join more than 100 countries of the world introducing this new exchange of information standard to combat tax evasion.
The OECD representatives welcomed Ukraine's aspiration to join the automatic exchange of information from 2020, and stated their readiness to actively cooperate with Ukraine to achieve these goals. As you know, Ukraine has joined the Global Forum on Transparency and Information Exchange for OECD Taxation in 2013 and has committed itself to complying with international transparency standards.
At the meeting, fruitful cooperation between Ukraine and the OECD was agreed. OECD representatives emphasized that the successful implementation of the tasks was dependent on the effective work of all stakeholders and offered their expert assistance.