Changes to CFC Rules in Ukraine: Time to liquidate Cyprus or other offshore companies?

Recent legislative changes in Ukraine exempt individuals from personal income tax on income received from liquidation of foreign companies, and may be the catalyst forcing many Ukrainian business people to re-evaluate the future of their Controlled Foreign Companies (“CFCs”). Coupled with the recently introduced Register of beneficial owners in Cyprus, not to mention the increasingly stringent Cypriot banking compliance requirements, liquidation may just be the most appealing route to take advantage of new tax incentives and provide the best possible exit route for offshore companies.