Reports from CFC

GLS Law Company Services: CFC Reporting

Owners of Controlled Foreign Corporations (CFC) are required to regularly submit documents related to this structure to regulatory bodies. This particularly involves the accurate preparation and timely submission of reports to tax authorities.

Contact the GLS Law Company legal agency if you are interested in the reporting service. Our experts will prepare the necessary documents, correctly fill out the required paperwork, and answer all your questions regarding CFC reporting.

Who Needs to Submit a CFC Report

The responsibility for preparing and submitting reports to tax authorities lies with the owner (controller) of a foreign structure. This status can be held by both natural and legal persons – tax residents of Ukraine. They must be direct owners of the CFC or its indirect controllers. This status can be confirmed by a trust declaration, power of attorney, and other documents.

You must submit a CFC report if you:

Own more than 50% of the foreign structure. Own more than 10%, provided that the rest of the tax residents collectively own more than 50% of the company. Exercise direct control over the foreign structure.

If you need help with submitting a CFC report, contact our agency. Experts will prepare and fill out the notification for the tax office, considering the specifics of your foreign structure’s activities.

What Is Included in the CFC Reporting

GLS Law Company lawyers will correctly prepare all necessary documents and fill out the CFC report, indicating in it:

The name of the foreign structure, its tax number, and other basic information. Ownership structure of the share (in case of indirect ownership). The size of the share belonging to each controlling person. Detailed information about the company’s income, profit from its activities (before taxation). Calculation of adjusted profit. The amount of dividends received from legal entities. The number of employees in the foreign structure. The amount of profit actually paid out to controllers and much more.

In some cases, if tax authorities doubt the accuracy of the CFC report, they may require an opinion from an auditing company. Moreover, the auditor must have the appropriate license, which may vary in different foreign jurisdictions.

Nuances of Preparing and Submitting a CFC Report

To avoid problems with the tax service, it is necessary to correctly fill out and timely submit CFC reporting. For this, our specialists:

Prepare a profit and loss report of the foreign structure for the calendar year. May submit the report to regulatory bodies simultaneously with the income declaration or with the corporate income tax. Attach to the document a copy of the financial statement of the business entity, confirming the earned profit or incurred losses.

Note that along with the CFC report, our lawyers can prepare and submit:

Detailed financial statements of the foreign structure. An auditor’s opinion on the financial statements of the foreign structure. In some countries, this requirement is mandatory. In other cases, submitting an opinion along with the CFC report is voluntary.

Such documents need to be provided even if the foreign structure is exempt from taxes.

How to Order CFC Reporting Services from GLS Law Company

To get in touch with experienced lawyers, leave a request on our agency’s website. A specialist will contact you for a personal consultation and to discuss the details of your task. You can also call our experts at the GLS Law Company contact phones.

The price of the service can vary widely depending on the complexity of the actions involved in preparing and submitting the CFC report. Therefore, the cost will be determined individually for you.