The Law of Ukraine “On Amendments to the Tax Code of Ukraine on Transfer Pricing”
We bring to your attention the final text of the Law of Ukraine “On Amendments to the Tax Code of Ukraine on Transfer Pricing” for comparison with earlier versions. The final text of the Law was signed by the President of Ukraine on July 31, 2013 and published on the official website of the Verkhovna Rada of Ukraine.
It is worth mentioning that at the first perfunctory reading of the text you may find some deviations from the version adopted by the Verkhovna Rada of Ukraine on July 4, 2013.
For instance, definition of persons considered to be related for the purposes of transfer pricing (subpara. 14.1.159) was extended with the following interpretation:
“c) legal entities – if the same person directly and/ or indirectly owns corporate rights of such legal entities and the size of the share of corporate rights in each entity constitutes 20 percent or more”.
In subpara. 220.127.116.11 to pricing methods, in case of application of which the choice of the party of a controlled operation is to be accomplished, was added method “18.104.22.168 resale price” and deleted “22.214.171.124 income distribution”.
Similar changes in the pricing methods occurred in the subpara. 126.96.36.199.
In determining the final provisions (Chapter II of the Law) under Amendment 446 of deputy Khomutynnik V. (regarding the date of Law entering into force) the para. 1 was extended with the provision that para. 2 and 3 of this section shall enter into force from the day following the day of publication of the Law.
The spirit of the international community of TP professionals
Impressions of participation in the Global Transfer Pricing Forum in Munich under the auspices of the International Tax Review
Bulgaria is excluded from the list of “low tax” jurisdictions for TP purposes
Transfer pricing penalties: general overview
30 % adjustment under subpara. 140.5.4 of the Tax Code of Ukraine from now on will cover one more kind of transactions. What do we think about practical application of new rules?
The list of legal forms of non-residents who do not pay income tax (corporate tax), including tax on income received outside the state of such non-residents’ registration, and /or are not tax residents of the state in which they are registered as legal entities