News

New list of offshore states and territories

The Ministry of#nbsp;Finance approved a#nbsp;special list of#nbsp;states and territories. The order came into force on#nbsp;April 27, 2024. Its effect was extended to#nbsp;relationships from January 1, 2024. It#nbsp;must be#nbsp;applied to#nbsp;the tax periods 2024#nbsp;— 2026 for income tax and personal income tax.

The new list includes 40 countries and territories, more than two times less than the list that the Ministry of#nbsp;Finance approved in#nbsp;June 2023. The new list does not include Australia, Canada, the Republic of#nbsp;Cyprus, the United Kingdom of#nbsp;Great Britain and Northern Ireland, the USA, Taiwan (China), Ukraine, or#nbsp;Japan.

The new list must be#nbsp;applied:

for tax exemption of#nbsp;profits of#nbsp;controlled foreign companies
to#nbsp;adjust the profits of#nbsp;controlled foreign companies
to#nbsp;determine the tax base for income tax
to#nbsp;apply the dividend profit rate.