Ukraine has introduced changes to the Tax Code regarding transfer pricing. It was officially published on August 10, 2015, and came into force from August 11, 2015. As per the new law which came into force from August 11 2015, taxpayers are allowed to use Comparable Uncontrolled Price (“CUP”) method only with reference to the prices on the commodity exchange for the decade preceding the date of the controlled transaction. The list of commodities subject to this rule as well as the list of foreign commodity exchanges that can be used for each group of the commodities shall be determined by Ukraine’s Cabinet of Ministers.
Taxpayers are allowed to use other transfer pricing methods but are required to submit to the tax authorities, by May 1 of the year following the reporting, information on the entire chain of supply of the goods to or from the first unrelated counterparty, including information on profitability of all related parties participating in the respective chain of supply. All taxpayers are required to submit a report on controlled transactions by May 1 of the year following the reporting irrespective of volume of transactions.
