Transfer pricing in Ukraine: report, TP documentation and advisory
We identify which of your transactions are controlled, prepare the Controlled Transactions Report and transfer pricing documentation that stands up to a tax authority request. We work ahead of the 1 October deadline and in the 30-day mode when the request has already arrived.
- Screening of transactions against the controlled criteria
- Selection of the TP method and the reasoning behind it
- Benchmarking study and arm’s length range
- Controlled Transactions Report
- TP documentation in the structure required by the Tax Code
- Notification of participation in a multinational group
- Support during a tax authority request or audit
A transaction is controlled when the taxpayer’s annual revenue exceeds UAH 150 million and the volume with a single counterparty exceeds UAH 10 million net of indirect taxes. Both conditions have to be met together.
The rules also capture transactions with non-residents from the low-tax jurisdiction list, with non-residents in specific legal forms and transactions routed through non-resident commission agents.
The approach to compiling the list of states and territories was revised, indirect ownership tests for relatedness were clarified, and the required content of the documentation was expanded.
Three deadlines you cannot miss
Filed annually by 1 October of the year following the reporting year. The Notification of participation in a multinational group is due on the same date.
Documentation is filed on request from the tax authority within 30 calendar days. A proper benchmarking study cannot be built from scratch in that window, which is why the file is prepared in advance.
The global documentation is filed on request where the group’s consolidated revenue is EUR 50 million or more. Country-by-country reporting applies to groups from EUR 750 million.
Everything else that touches cross-border transactions
When you only need the report itself and a check of the figures you filed.
When a TP audit has already produced an assessment and a penalty.
To see your tax exposure before the tax authority does.
What we need for the report and the documentation
We send the list with the contract. The earlier this is collected, the lighter the season: once the tax office asks for the documentation, only 30 calendar days remain.
Turnover with non-resident counterparties for the year, broken down by counterparty, with the goods or services and their codes.
Contracts with non-residents and their annexes, invoices, acceptance acts, customs declarations, and delivery and payment terms.
The ownership and control chart, details of the parent company, and information on membership of an international group.
Cost calculations, price lists, internal pricing rules, and the discounts and credit terms applied to related parties.
The annual financial statements and trial balance, plus revenue data to test the value thresholds.
Controlled transaction reports and transfer pricing files filed earlier, and any correspondence with the tax office about them.
What clients ask most often
We have no related parties abroad. Does TP still apply?
More often than companies expect. If your counterparty is registered in a state on the Cabinet of Ministers list, or has a legal form from a separate list, the transaction becomes controlled with no relatedness at all.
Can we file the report now and prepare documentation later?
Formally yes: documentation is filed on request. But a request gives only 30 calendar days, and a benchmarking study plus method reasoning is hard to produce in that time. It is safer to prepare the documentation in the same season as the report.
What happens if the report is not filed?
A penalty for the missing report plus a separate penalty for every undeclared transaction, and paying the penalty does not remove the obligation to file. Penalty amounts are pegged to the subsistence minimum and rise every year.
Can you do both the audit and the TP work for one client?
Yes. These are different services and may be combined: preparing TP documentation is not preparing financial statements. If we audit your statements, we agree the scope of the TP work separately so that independence is not affected.
What does preparing transfer pricing documentation include?
A description of the group and the controlled transactions, a functional analysis of the parties, the choice of TP method, a search for comparable companies or transactions, the arm’s length range, a conclusion on compliance and appendices with calculations. Prepared in Ukrainian and, where the group needs it, in English.
TP advisory: when is advice enough and when is documentation required?
Advice is enough when you need to know whether a transaction is controlled, how to structure a related-party contract or what the price should be. Documentation is mandatory once controlled transactions exist: it must be provided to the tax office within 30 days of a request, so it is prepared in advance together with the controlled transactions report.
Request a proposal
Tell us the reporting year, what you need and whether a tax authority request has already arrived. We reply within 1 business day.