Worldwide transfer pricing reference guide 2014

Ukraine (continued)
Transfer pricing–specific returns
Ukrainian transfer pricing rules require the submission of a transfer pricing report disclosing all controlled transactions of a taxpayer for
the reporting period. Refer to the section above for more details.
Frequency of tax audit and transfer pricing scrutiny by the tax authority
According to the Law, transfer pricing audits should be performed independently from other tax audits. notably, compliance with
transfer pricing rules is not allowed to be audited during other tax audits. Audits to verify compliance with the transfer pricing rules are
performed by a special division of the tax authority dealing with transfer pricing issues. Transfer pricing audits will be performed by local
tax authorities led by a representative from the Tax Ministry.
In general, the likelihood of an annual tax audit may be assessed as high, and so is the likelihood of the transfer pricing review. The
likelihood that the transfer pricing methodology will be challenged during the course of an audit is currently unknown due to the novelty
of the legislation and absence of practical experience in Ukraine.
Self-and corresponding adjustments are possible. Self-adjustments are the upward adjustments of tax liabilities performed by taxpayers
resulting from the application of the transfer pricing rules and have to be recorded in Corporate Profit Tax (CPT) and VAT returns.
Deadlines for filing the transfer pricing report is not aligned with the deadlines for filing CPT and VAT returns.
APA opportunity
APAs are regulated by the Decree of the Cabinet of Ministers of Ukraine №764 (17 October 2013), which provides procedures for
concluding APA agreements. An APA may be concluded between large taxpayers and the Tax Ministry. The Decree does not state clearly
that an APA is binding on the tax authorities.
Expected reaction to OECD Report on BEPS
Ukrainian tax authorities are planning to participate in the global system of automatic exchange of tax information. There are currently
no specific steps taken.
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