Ukraine’s Ministry of Finance has launched a public consultation on a draft law amending transfer pricing rules in the Tax Code. The bill aims to protect the tax base, reduce disputes and double taxation risks, simplify reporting for businesses and align national legislation with OECD and EU standards.
Ukraine’s Ministry of Finance (MoF) opened a public consultation on a draft law titled “On Amendments to the Tax Code of Ukraine Regarding Further Improvement of Transfer Pricing Rules” on 24 February 2026.
The draft was prepared with the support of experts from the Organisation for Economic Co-operation and Development (OECD), together with specialists from the State Tax Service. It is intended to protect Ukraine’s tax base, reduce disputes and the risk of double taxation, and further align national legislation with OECD and EU standards.
Key proposed changes
The draft law provides for a broad set of amendments, including:
- Revision to the monetary thresholds for recognising transactions as controlled (the threshold at which transactions between related parties are subject to special tax control);
- Extension of the application of the arm’s length principle to certain domestic transactions, in particular with loss-making enterprises and entities benefiting from preferential tax regimes;
- Simplification of transfer pricing documentation and the report on controlled transactions;
- Clarification of the algorithm for identifying and determining the actual conditions of controlled transactions for the purpose of conducting a comparability analysis;
- Clarification of the application of transfer pricing methods, including the resale price method, cost-plus method, transactional net margin method, and profit split method;
- Improvement to the approach to transactions involving intangible assets (DEMPE analysis);
- Introduction of an updated penalty model that will encourage voluntary adjustments and good-faith behaviour by taxpayers;
- Clarification of provisions regarding rebuttable presumptions when selecting a method and sources of information.
Special attention has been given to simplifying reporting requirements for businesses. For taxpayers with annual income of up to UAH 150 million, simplified transfer pricing documentation will be introduced. For controlled transactions with a value of up to UAH 10 million, documentation will be submitted upon request of the tax authority.
Background and purpose
Transfer pricing regulates the determination of prices in transactions between related parties in accordance with the arm’s length principle. This means that the terms of transactions between related companies, including prices, must not differ from those that would be established between independent companies, i.e. they must reflect market conditions.
It is precisely through intra-group transactions that base erosion and profit shifting to jurisdictions with lower levels of taxation most frequently occur worldwide. The proposed amendments are intended to minimise such risks and ensure fair taxation of profits in Ukraine.
At the same time, the draft law seeks to enhance tax certainty for businesses and reduce the number of disputes between taxpayers and tax authorities.
Compliance with international standards
The draft law has been prepared taking into account:
- the OECD Transfer Pricing Guidelines (2022 edition);
- Actions 8–10 of the BEPS Action Plan;
- Ukraine’s obligations under the EU–Ukraine Association Agreement;
- measures set out in the National Revenue Strategy through 2030.
The draft law and related materials are available on the Ministry of Finance website. Comments can be sent to 11 Mezhyhirska Street, Kyiv, or via email to infomf@minfin.gov.ua and tp@minfin.gov.ua. The ministry invites businesses, experts, and stakeholders to join the discussion.
