On 19 January 2018, the State Fiscal Service (SFS) released Guidance Letter No. 119/6 / 99-99-15-02-02-15 / IPK of January 12, 2018, which defines the definition of controlled transactions for cross border transaction purposes.
Under the amendments to article 39.2.1.1 of the Tax Code effective from 1 January 2018 transactions with non-resident related parties, transactions with residents of low-tax jurisdictions and sales of goods through a non-resident agent are classified as controlled. In addition, transactions are also classified as controlled transactions if the annual income of the taxpayer within the reporting period exceeds UAH 150 million (approximately USD 5.2 million), and the sum of the transactions with each counter party exceeds UAH 10 million (approximately USD 357,000).
