International conference dedicated to implementation of BEPS in Ukraine

Locations: Webinar on Zoom
Start Date:

7/23/2020 9:00 AM

End Date:

7/23/2020 6:00 PM

The Committee of Entrepreneurs on Tax Issues at the Ukrainian Chamber of Commerce and Industry, together with Crowe Mikhailenko, are organizing the III International Practical Online Conference "Ukraine Anti-offshore", which will be held on July 23, 2020, from 9.00 to 18.00 on the Zoom platform.

At the conference, we will discuss in detail the key novelties: how to deal with controlled foreign companies, CFC liquidation, what to do with 30% adjustments when exporting to low tax jurisdictions, risks and troubles of principal purpose test and many other questions that will soon become a reality for every Ukrainian businessman.

We have invited tax experts from all over  the world: Kazakhstan, Hungary, Estonia, Russian Federation, Switzerland and UAE.

The speakers will talk about how new situations for our realities work in their countries.  Recognized tax consultants of Ukraine will also share their thoughts.

We invite you to join the fruitful discussion.

ІІІ International Conference

Ukraine Anti-offshore

July 23, 2020

Сonference venue: Zoom

Time: 09:00-18:00
Lunch: 13:00-14:00




09:00 – 09:05



Dmitriy Mikhailenko

Anti-offshore package: MLI, protocols to bilateral conventions, Law 466-IX, coming amendments. Automatic exchange of information and special declaration. Experience of foreign countries

09:05 - 10:10



Vita Forsiuk

Yevhen Kozlov

1. Origins. Monetary liberalization and BEPS plan 2. Instruments that have entered into force:

- MLI,

- protocols to bilateral conventions

- Law 466, its coming amendments

3. Next steps: expectations:

- automatic exchange of information

- special declaration and tax amnesty

- indirect methods









10:10 - 10:55



Dmitriy Mikhailenko


Vitaliy Smerdov

4. Anti-offshore initiatives that have so far been abandoned:


- TP for payers of special agricultural tax


- exchange differences


- 20% VAT on exports below cost


- interest and royalties on investment funds



5. Corporate income tax


5a) Tax incentives


- 40 million threshold for Income to apply tax adjustments

- Increase in the value threshold of fixed assets


- Accelerated depreciation of 4th and 5th groups of fixed assets


5b) Tax limitations


- Carrying forward of losses during the reorganization


- restrictions on deduction for interest paid on loans received from nonresident related party (“thin capitalization”): 30% of tax EBITDA. New rules for interest within construction in progress.


- An increase in the tax burden on sales in favor of “low-tax” non-residents

- Expanded scope of the business purpose. Criteria. Examples fromcase law. Scope (legislative perspective). Burden of proof



10:55 - 11:55



Dmitriy Mikhailenko

Oleh Chaika

6. Withholding tax



Principal purpose test. Cases where the intentions of the payer coincide with the intentions of the member-states to the convention. Cases where the provisions of the conventions do not contain the rules of the Principal purpose. MLI and bilateral conventions to it. Examples from OECD recommendations. Under what conditions does the creation of a holding / operating company in Cyprus meet principal purpose test.


Changes in the definition of the beneficial owner of income. Substance. Questionnaires of tax authorities. Facts that matter. Case law in Ukraine, requirements of foreign banks and jurisdictions. How much substance is enough? Beneficial ownership of transit revenue. Beneficiary test only in cases stipulated by the convention. Capitalization of loans as a solution



Sale of securities and corporate rights with the Ukrainian component. Non-resident buyer as a tax agent: how it works for multilevel structures with and without real estate. Legislator's plans and future risks


7. Recent amendments to the double taxation convention


Cyprus. Interest - when the Ukrainian withholding tax is more than Cypriot and what to do with it. Dividends: Does the rate of 5% work for mutual investment fund. Capital gains: from the best convention to the worst. Possible scenarios for the development of the situation. Business relocation, work with the base, taking into account principal purpose test.


Protocols to conventions with the UK, Switzerland, the Netherlands.


Countries with zero dividend, interest and royalty rates

11:55 - 13:00



Dmitriy Mikhailenko

Serhei Molyboh


8. PIT

Deemed (imputed) dividends: how it will work. Application of conventions. Case law in other countries



Regular prices for the sale of investment assets to low-tax or related non-residents


9. Controlled foreign companies:


Since when do they take effect?


СFCs and controlling persons


Actual control


When the founder of the trust is not a controlling person and how to confirm this. Discretionary irrevocable trusts / funds.


When non-founder of the trust - the controlling person


The controlling person is the Ukrainian holding: benefits and consequences for its shareholder.


When there is no CFC taxation - 2 million threshold


When there is no CFC taxation. What is active and passive income. Mixing of revenues.

When substance is necessary?


Cyprus. UAE. Singapore. Estonia. Malta. USA.


When there is no taxation of CFC - public company and how to create it quickly


Deductions for holdings at Ukrainian and foreign operating companies. Subordinated Company Model


When there is no CFC taxation - the distribution of dividends - how realistic. Personal income tax rates. Deduction of taxes paid in another jurisdiction


CFC reporting - when to submit. Content. CFC staff as an element of substance. Documents attached to the reporting.



When the controller additionally reports the purchase or sale of foreign shares. When government agencies or banks report about this


When do they not report on CFCs?


The liquidation of the CFC. When do you need to make decision on liquidation? When could the payer enjoy the benefit?

Coming amendments to the draft. Expected amnesty and special declaration: how is it combined?


Change of residence: how to convince the Ukrainian tax authorities. Case law: two categories of court cases, a review of cases and criteria when elements of residence are connected with Ukraine. 183 days.

leaving for permanent residency abroad and filing the last declaration.

13:00 - 14:00


14:00 - 14:35

Dmitriy Mikhailenko

Aleksei Shmatko


Permanent establishments and recognition of a Ukrainian company as a resident


Changes to the definition of a permanent establishment. Power of attorney, corporate mail and visit cards. Directors and signatories from Ukraine -case law. Cases Yuzhgok and Phoenix Capital. Contractors in Ukraine - relevant clarifications. Change of calculation rules (elimination of coefficient 0.7). Registration of Permanent establishments.


Recognition of a Ukrainian company as a resident. Decision-making criteria, management of bank accounts, etc. Registration of a non-resident in Ukraine is a right or an obligation. Risks. Application of conventions (examples: Cyprus, Estonia and Singapore).

Object - only profit from Ukraine - opportunities?

14:35 - 15:45

Dmitriy Mikhailenko

Olga Bogdanova

Nykolai Myshyn

10. TP rules


Expansion of scope


Related parties: 25% and joint ventures


Reduction of functions and departments as a controlled operation


Discount value on intangible assets


Stock prices, commodity and exchange listings, contract notifications


Strategies and risks. Actual behavior and substance in support of contractual terms




International Group Notice


Business purpose


Global documentation (master file). 50 million euros. Deadlines and content


Country by country report. 750 million euros. Terms of submission and content


Documentation on the technical and financial statement. Content expansion. Business objective in substantiation of non-commodity operations


Penalties for non-submission (distortion) of reports (documentation) on TP


Proportional adjustments


11. Tax audits and liability. The principle of guilt. Clarification of the procedure for unscheduled tax audit: for the presence of permanent establishments, if necessary, to obtain information from foreign tax services. The process of mutual harmonization in the application of international conventions and its advantages.

15:45 - 16:00

Barsky Dmitry

12. Foreign experience in introducing BEPS:


Implementation of CFC - Russian experience

16:00 - 16:15

Leonid Agejev

Principal purpose test – Estonian Experience


16:15 - 16:30

Igor Li

MLI in Kazakhstan


16:30 - 17:00

Markus Susilo / Deepika Chandak

Liquidation of UAE companies


17:00 - 17:30

Anna Kunsági


Master file