First Step To A Better Transfer Pricing Administration: Ukraine Allows Advance Pricing Arrangements With Tax Authorities

Ukraine has introduced new rules on transfer pricing, due to take effect in 2013, which will align it more closely with OECD states. The following article discusses the upcoming changes and the implications for transfer pricing in Ukraine.

For many years Ukraine has been a state not much concerned over transfer pricing issues. Ukrainian conglomerates were the ones who especially benefited from such a state of affairs by allocation of their profits to offshore and low tax jurisdictions. But times seem to be changing and the Ukrainian government is keen on implementing transfer pricing methods and compliance practices as followed by OECD states. It is no secret that fiscal deficit is the principal driver of such governmental effort.