Ukraine publishes ATAD controlled-foreign-company draft

Existing Ukrainian CFC rules remain operative

Ukraine's current CFC regime is in article 39-2 of Tax Code No. 2755-VI. It can treat a foreign entity as controlled where a Ukrainian-resident individual or legal entity owns more than 50%, owns more than 10% while Ukrainian residents together own at least 50%, or exercises factual control. The controlling person's taxable amount is generally its proportionate share of the CFC's adjusted profit. Existing exemptions include qualifying treaty-and-effective-tax or active-income conditions and separate exclusions including the EUR2 million aggregate-income test.^[3][4]

The publication is a Ministry proposal

The 30 October publication does not itself replace those rules. The Ministry's register records a draft law, comparison table and explanatory note, while its 4 November update says the proposal will be submitted to the Cabinet. The stated purpose is to implement ATAD Articles 7 and 8. At EU level, Article 7 provides CFC control and low-tax tests and alternative income-inclusion approaches; Article 8 covers computation, timing, participation allocation and double-tax relief. Those Directive mechanics show the policy direction but do not substitute for the Ukrainian draft's exact clauses.^[1][2][5]

What multinational groups should do

Groups with Ukrainian-resident companies controlling foreign subsidiaries should preserve their existing article 39-2 calculations and reporting process while the proposal advances. They should separately map ownership, voting and profit rights, foreign tax actually paid, passive-income categories, substantive activity and the periods in which foreign profits arise. Those facts may matter to an ATAD-aligned design, but final thresholds, exemptions and transition cannot be inferred from the Directive alone.^[3][5]

Detailed clauses remain held separately

No new return, payment deadline or tax charge follows from publication of the draft. The practical next milestone is an accessible official comparison table or explanatory note, followed by Cabinet or parliamentary action. Until then, the supported news is the 30 October proposal-stage milestone; commencement, final clauses and entity-specific obligations remain unverified.^[1][2]