The list of states (territories) for transfer pricing purposes has been updated to 46 instead of 78
30 December 2024 15:42
The Cabinet of Ministers has adjusted the list of states (territories) for transfer pricing purposes, which will come into force on January 1, 2025. This was reported by the Ministry of Finance of Ukraine, "Komersant Ukrainian" reports.
The relevant amendments bring the list of states (territories), transactions with residents of which are recognized as controlled for transfer pricing purposes, in line with the Law of Ukraine No. 3813-IX dated 18.06.2024 “On Amendments to the Tax Code of Ukraine on Peculiarities of Tax Administration during Martial Law for Taxpayers with a High Level of Voluntary Compliance with Tax Legislation”.
Thus, taking into account the provisions of this Law, the updated list of states (territories) will contain 46 states (territories) instead of 78, in particular
– the states with which Ukraine has entered into international treaties for the avoidance of double taxation have been excluded;
– the states included in the list of offshore zones approved by the Cabinet of Ministers of Ukraine and the “black list” FATF;
– states (territories) that do not ensure timely and complete exchange of tax and financial information are included.
It is worth noting that the list of states (territories) was approved for the purpose of recognizing the taxpayer’s business transactions as controlled transactions in accordance with the provisions of sub-clause 39.2.1.1 of the Tax Code of Ukraine.
The Ministry of Finance reminded that taxpayers who in the reporting year carried out business transactions with non-residents registered in the states (territories) included in the list of states (territories) or who are residents of these states, provided that the criteria provided for in subparagraph 39.2.1.7 of subparagraph 39.2.1 of paragraph 39.2 of Article 39 of the Tax Code of Ukraine, are obliged to submit a report on controlled transactions by October 1 of the year following the reporting year, as well as to prepare and keep transfer pricing documentation and submit it at the request of the central executive body implementing the state tax policy within 30 calendar days from the date of receipt of the relevant request.
