How to comply with transfer pricing in Ukraine?
Transfer pricing rules in Ukraine came into force in 2013. Transfer pricing control is a taxation of the results of a certain range of transactions, including: transactions with related non-resident persons; foreign economic transactions for the sale/purchase of goods and/or services through non-resident commission agents; transactions with non-residents that are included in the list of states/territories approved by the Cabinet of Ministers of Ukraine for the purposes of paragraphs. 126.96.36.199 of the Tax Code, or are residents of such countries; business transactions that are made with non-residents who do not pay income tax (corporate tax), including on income received outside the country of their registration.
Given the latest changes in the tax legislation of Ukraine and the world, as well as actively developing trends in the automatic exchange of information, transfer pricing issues are increasingly arising in the activities of companies. The tax authorities show increased attention to foreign economic transactions that are concluded between companies. The instability of Ukrainian legislation and insufficient state control over transfer prices lead to additional risks and losses for business.
The current situation requires companies to pay increased attention to transactions and their details, which may further affect taxation.
Finance Business Service provides transfer pricing services. We can plan the strategy of operations and preparation of documentation, conduct a preliminary analysis of pricing agreements and identify the risks of planned operations.
We know the peculiarities of Ukrainian transfer pricing and successfully combine them with experience in other jurisdictions. Finance Business Service specialists prepare consultations regarding the necessary documentation, or offer ready-made solutions with the preparation of a documentation package.
If necessary, our employees can represent the interests of your company in litigation related to transfer pricing. At the same time, our activity is aimed at avoiding disputes, which are costly both in terms of money and time.
The company's specialists provide services to support tax audits, prepare objections to tax audit reports, represent the interests of the client when discussing audits with state tax authorities.
We will help the client develop business processes and internal control systems in order to comply with transfer pricing policies. Our specialists prepare justifications for the applied methodology and the compliance of current prices with the market level.