{"id":18804,"date":"2017-07-26T14:06:47","date_gmt":"2017-07-26T11:06:47","guid":{"rendered":"https:\/\/euconlaw.com\/transfer-pricing-in-2017-improvement-under-the-slogan-of-liberalization\/"},"modified":"2017-07-26T14:06:47","modified_gmt":"2017-07-26T11:06:47","slug":"transfer-pricing-in-2017-improvement-under-the-slogan-of-liberalization","status":"publish","type":"post","link":"https:\/\/euconlaw.com\/en\/transfer-pricing-in-2017-improvement-under-the-slogan-of-liberalization\/","title":{"rendered":"Transfer Pricing in 2017 \u2014 Improvement Under the Slogan of Liberalization"},"content":{"rendered":"

F<\/strong>rom 1 January 2017 Ukrain\u00adian tax legislation regulating transfer pricing has undergone changes, which generally can be evaluated as liberal and which were introduced in the interests of taxpayers. Here is the short list of changes.<\/p>\n

Increase of Cost Criterion to Recognize Transactions as Controlled<\/span><\/strong><\/p>\n

This is definitely the most expected busi\u00adness standard. Preparation of reports on controlled transactions and documentations for many small businesses, whose sum of ac\u00adtivities fell within the criterion to recognize transactions as controlled, was quite bur\u00addensome. From now on transfer pricing is a prerogative right of taxpayers with more sub\u00adstantial amounts of income.<\/p>\n

The annual income criterion was in\u00adcreased to UAH 150 million (earlier it was UAH 50 million).<\/p>\n

The volume of transactions with one counterparty was increased to UAH 10 mil\u00adlion (earlier it was UAH 5 million).<\/p>\n

Comment: yet the non-availability of controlled transactions does not mean a lack of attention on the part of controllers to a range of non-controlled transactions. Thus, for example, income tax payers with an annual income of at least UAH 20 million are obliged to increase their financial result before tax by adjusting by 30% the cost of goods, works (services) acquired from non-residents registered in countries included in the list approved by the Cabinet of Minis\u00adters of Ukraine. The increase in the taxable financial result is carried out also in case of costs accrual in the form of royalties for the benefit of non-residents. And it seems that it is possible to avoid adjustments only if a company prepares substantiation of price level under transfer pricing rules. In other words, you should either increase the tax base or substantiate level of costs in docu\u00admentation.<\/p>\n

On Extension of Controlled Transactions List<\/span><\/strong><\/p>\n

From now on foreign economic transac\u00adtions can be recognized as controlled not only on sales, but also on the acquisition of goods and\/or services carried out via a non-resident commission agent.<\/p>\n

Economic transactions carried out with non-residents who do not pay income tax (corporate tax), including tax on income re\u00adceived outside country of registration of such non-residents, and who may not be tax resi\u00addents of a country where they are registered as legal entities can also be recognized as controlled. The list of business legal struc\u00adtures of such non-residents by countries (ter\u00adritories) shall primarily include British LLP companies.<\/p>\n

The current list of countries (territories) of low-tax jurisdictions and countries, with which Ukraine has not concluded any agree\u00adments including provisions on information exchange should be supplemented with a list of countries, with which such agreements were concluded, but competent authorities do not provide timely and full tax informa\u00adtion exchange upon requests from the tax of\u00adficials. While this year any country (territory) is included in the said list of the Cabinet of Ministers of Ukraine, transactions with coun\u00adterparties registered in such a country (terri\u00adtory) shall be recognized as controlled from 1 January of the following calendar year.<\/p>\n

On Controlled Transactions that are Carried out on the Basis of a Forward or Futures Contract<\/span><\/strong><\/p>\n

In case of carrying out controlled transac\u00adtions under a forward or futures contract, price comparisons shall be performed on the basis of information on forward or futures prices as of the date closest to the date of the respective forward or futures contract\u2019s conclusion.<\/p>\n

If a controlled transaction is related to export and\/or import of exchange goods, car\u00adried out on the basis of forward or futures contracts, then to substantiate compliance of such transactions conditions with the \u201carm\u2019s length\u201d principle, price range shall be calculat\u00aded on the basis of exchange quotations of cor\u00adresponding goods for the decade preceding the date of the respective contract\u2019s conclusion.<\/p>\n

Source:\u00a0Ukrainian Law Firms\u00a02017<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

From 1 January 2017 Ukrain\u00adian tax legislation regulating transfer pricing has undergone changes, which generally can be evaluated as liberal and which were introduced in the interests of taxpayers. Here is the short list of changes. Increase of Cost Criterion to Recognize Transactions as Controlled This is definitely the most expected busi\u00adness standard. Preparation of [:]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[94],"tags":[],"yoast_head":"\nTransfer Pricing in 2017 \u2014 Improvement Under the Slogan of Liberalization - EUCON legal Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transfer Pricing in 2017 \u2014 Improvement Under the Slogan of Liberalization - EUCON legal Group\" \/>\n<meta property=\"og:description\" content=\"From 1 January 2017 Ukrain\u00adian tax legislation regulating transfer pricing has undergone changes, which generally can be evaluated as liberal and which were introduced in the interests of taxpayers. Here is the short list of changes. Increase of Cost Criterion to Recognize Transactions as Controlled This is definitely the most expected busi\u00adness standard. Preparation of [:]\" \/>\n<meta property=\"og:site_name\" content=\"EUCON legal Group\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-26T11:06:47+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/euconlaw.com\/#website\",\"url\":\"https:\/\/euconlaw.com\/\",\"name\":\"EUCON legal Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/euconlaw.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"#webpage\",\"url\":null,\"name\":\"Transfer Pricing in 2017 \\u2014 Improvement Under the Slogan of Liberalization - EUCON legal Group\",\"isPartOf\":{\"@id\":\"https:\/\/euconlaw.com\/#website\"},\"datePublished\":\"2017-07-26T11:06:47+00:00\",\"dateModified\":\"2017-07-26T11:06:47+00:00\",\"author\":{\"@id\":\"https:\/\/euconlaw.com\/#\/schema\/person\/885bb53bf78f77a53b9f988b08ac37e9\"},\"breadcrumb\":{\"@id\":\"#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[null]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/euconlaw.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Transfer Pricing in 2017 \\u2014 Improvement Under the Slogan of Liberalization\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/euconlaw.com\/#\/schema\/person\/885bb53bf78f77a53b9f988b08ac37e9\",\"name\":\"osadchyppua\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/euconlaw.com\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/05757e1f9a085053643881aaa3c3ee31?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/05757e1f9a085053643881aaa3c3ee31?s=96&d=mm&r=g\",\"caption\":\"osadchyppua\"},\"sameAs\":[\"https:\/\/euconlaw.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/posts\/18804"}],"collection":[{"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/comments?post=18804"}],"version-history":[{"count":0,"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/posts\/18804\/revisions"}],"wp:attachment":[{"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/media?parent=18804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/categories?post=18804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/euconlaw.com\/en\/wp-json\/wp\/v2\/tags?post=18804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}