The State Fiscal Service (SFS) published Letter No. 24525/7/99-99-22-01-02-17 issued on 7 July 2015 addressing the penalties levied for failure to submit transfer pricing (TP) documentation or to include relevant information about controlled transactions.
In case of failure to submit TP documentation upon SFS’s request, the penalty is 3% of the value of the controlled transaction but not exceed 200 times the minimum wage under the article 120 of the tax code.
The penalty will be imposed only if taxpayer fails to provide the SFS with the requested information. For incomplete file (which does not satisfy the requirements of the TP documentation provided by article 39 of the Tax Code), the SFS must subsequently send an additional request. And penalty is levied only if the taxpayer fails to provide the SFS with the additional information requested on the controlled transactions within 10 calendar days. The SFS clarified that the 10 calendar day term for submission of the TP documentation upon SFS’s request is calculated from the date when the request was received by the taxpayer.
The SFS is entitled to request the TP documentation after 1 May of the year following the year when the controlled transactions were performed.
