New Rules On Transfer Pricing

From 1 September 2013, new transfer pricing rules were introduced into Ukraine's Tax Code.

New, complex transfer pricing regulations have been introduced in Ukraine. These new rules are likely to have a significant impact on Ukrainian business and create additional possibilities for tax authorities to scrutinise business transactions.

Controlled transactions

Controlled transactions are defined as transactions exceeding an annual threshold of UAH 50 million (ca. EUR 5 mln) between: (i) Ukrainian resident related parties if one of them, as at the beginning of the relevant reporting year, has declared losses in the previous reporting year, has used a special tax regime, has paid corporate income tax (CIT)/VAT at a non-standard rate, or is not a registered CIT/VAT payer; (ii) Ukrainian resident and non-resident related parties; and (iii) Ukrainian resident and non-Ukrainian resident non-related parties if such a non-resident party is a taxpayer in the jurisdiction