News

The Cabinet of Ministers of Ukraine issued an updated list of countries (territories) which fall under the criteria for transfer pricing control.

The Ukrainian legislation with Ordinance No. 449-P, dated 14 May 2015, has updated the list of countries under the following criteria:

1. countries with the corporate profit tax rate 5 percent lower or more with respect to Ukraine
2. countries that do not disclose ownership structure of the legal entities and/or
3. countries that do not have international agreements with Ukraine on mutual information exchange.

The updated list includes four new jurisdictions – Austria, Turkmenistan, Niue and Hong Kong Special Administrative Region of the People’s Republic of China, increasing the number on the list up to 76. Albania was the only jurisdiction to be excluded from the list.

In light of the above, it is important to note that transfer pricing control of cross-border operations with legal entities from the countries on the list will apply in relation to corporate profit tax. Below is the updated list: