On April 29, an online meeting was held for Ukrainians in Hungary, focusing on issues that directly impact financial security and responsibility today — tax residency, the Common Reporting Standard (CRS), and the declaration of foreign income.
The event featured expert speakers including attorney and representative of the Ukrainian National Bar Association in Hungary, Viktor Yasievin, President of the Business Woman Club, Hanna Krysiuk, and was moderated by Kristina Hires, Director of the Business Woman representative office in Hungary.
A key topic of discussion was the determination of tax residency, as this status defines the country in which an individual must declare income and pay taxes. When opening a bank account, clients independently indicate their tax status, after which the bank evaluates a range of factors, including place of residence, tax identification number, contact details, and ties to a particular country. This determines whether the account falls under international reporting requirements.
Special attention was given to the CRS — a system for the automatic exchange of financial information between countries. Participants learned that shared data includes personal details, tax status, account information, and total annual turnover. However, detailed information about each individual transaction is not disclosed, which is an important nuance in understanding the level of financial oversight.
During the session, common myths were also debunked: information is not shared on all accounts, but only on those held by non-residents; there is no minimum threshold for reporting; and the mere fact of data exchange does not automatically trigger sanctions from tax authorities.
An important segment covered income declaration. If a person remains a tax resident of Ukraine, they are required to declare foreign income and pay taxes in accordance with Ukrainian legislation. At the same time, mechanisms for the avoidance of double taxation apply, allowing individuals to pay only the difference between tax rates in different countries.
The topic of Controlled Foreign Companies (CFCs) was also addressed, as it is becoming increasingly relevant for Ukrainians conducting business abroad. Participants were advised on the importance of timely reporting and compliance with legal requirements.
The practical part of the meeting focused on recommendations: correctly determining one’s tax status, updating information in banks, keeping records of income and taxes paid, and operating officially.
This meeting once again demonstrated that tax matters may seem complex, but they become clear with access to professional expertise. In today’s realities, this is not only about compliance, but also about financial literacy and strategic thinking.
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Photo: Canva