Global Tax Alert (News from Transfer Pricing) | 27 June 2013
The Ukrainian Parliament adopts Draft Law On Amending the Tax Code on Transfer Pricing in the first reading
On 20 June 2013, the Ukrainian Parliament adopted the Draft Law On Amending the Tax Code on Transfer Pricing in its first reading. The Draft Law is the first document in Ukrainian history that introduces comprehensive transfer pricing rules. The list of controlled transactions includes cross-border and domestic transactions between related parties if the overall annual volume of all transactions with the counterparty exceeds UAH 50 million per year. Other transactions will be subject to control as well.
The Draft Law requires taxpayers to file annual transfer pricing reports before 1 May of the year that follows the reporting year. It also provides for special tax audits and prohibits the tax authorities from testing (reviewing) transfer prices within regular tax audits.
Furthermore, the Draft Law proposes special rules for determining arm's length prices on import and export of metallurgical and agro industrial goods as well as of certain other types of goods.
The Parliament's Committee on Tax and Customs Policy has to prepare the Draft Law for its second reading in the near future.
Further developments will be reported in future Alerts.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLC, Kiev, Ukraine
- • Vladimir Kotenko
+380 44 490 3006
- • Jorge Intriago
+380 44 490 3003
- • Igor Chufarov
+380 44 492 8231
Ernst & Young LLP, Eastern European Business Group, New York
- • Julia Samoletova
+1 212 773 6790
EYG no. CM3570