From 1st September 2013, under the new transfer pricing law introduced in Ukraine, certain transactions between related and unrelated parties will be subject to the arm’s length principle and will be treated as controlled transactions under the tax law. The new law includes requirements for transfer pricing documentation reports and introduces other amendments to the transfer pricing rules.
Under the new provisions the first reporting deadline is 1st May 2014 and failure to submit a controlled transaction report will be subject to a penalty equal to 5% of the transaction cost.
