Since September 2013 there are new transfer pricing rules, introduced by the Law of Ukraine "On Amendments to the Tax Code of Ukraine regarding Transfer Pricing"
This law aims to control prices in transactions between connected persons, and persons who are in the different tax jurisdictions, upon condition that the aggregate amount of transactions with each contracting party exceeds 50 million UAH. The main purpose of the legal act is to prevent tax evasion through offshore schemes and government revenue increase.
According to the law up to 1st May 2014 business representatives have to report to the tax authorities on implemented in 2013 controlled transactions.
In addition, since the start of May the tax authorities might require documentation from taxpayers on transfer pricing, which should be prepared on term from one to two months, depending on the taxpayer size. Reporting forms on transfer pricing were approved by the Ministry of Revenue and Duties of Ukraine at the end of last year.>
Norm of the law violation leads to substantial penalties:
- 5 percent of the total amount of controlled transactions - in case of submission failure of the report on controlled transactions, the minimum amount of the penalty duty - 2.5 million UAH;
- 100 minimum wages - 121 800 UAH - in case of documentation failure at the request of the tax authorities.
In order to ensure the effective operation of a company, provision of information on amendments to the legislation, professional assistance in management decisions making "De Visu" Group offers services in transfer pricing field.
Professional team, which includes doctors and masters of economic and law sciences, lawyers, auditors and IFRS experts, appraisers, financial analysts, programmers, methodologists, could provide with professional advice and practical assistance in transfer pricing field.
"Our experts might help to identify the controlled transactions, investigate the conditions for their implementation, conduct market analysis and functional analysis, determine an appropriate transfer pricing methods and sources of information for each type of transaction. They also could provide practical assistance in reporting process and preparation of documents at the request of the tax authorities. Range of services includes system of internal control adjustment under the conditions of transfer pricing and holding of topical seminars", - said the President of "De Visu" Group Oleksandr Boiko.
