On December 27, the Government has amended the Annex to the Resolution of the Cabinet of Ministers of Ukraine No. 1045 dated December 27, 2017, which approved the list of states (territories) for transfer pricing purposes, effective from January 1, 2025.

The amendments were made to bring the list of states (territories), transactions with residents of which are recognized as controlled for transfer pricing purposes, in line with the Law of Ukraine dated 18.06.2024 No. 3813-IX “On Amendments to the Tax Code of Ukraine on Peculiarities of Tax Administration during Martial Law for Taxpayers with a High Level of Voluntary Compliance with Tax Legislation”.

Thus, taking into account the provisions of the Law of Ukraine No. 3813-IX, the updated list of states (territories) will contain 46 states (territories) instead of 78, in particular:

• excluded states with which Ukraine has concluded international treaties for the avoidance of double taxation;
• included states from the list of offshore zones approved by the Cabinet of Ministers of Ukraine and the FATF black list;
• included states (territories) that do not ensure timely and complete exchange of tax and financial information.

The Ministry of Finance of Ukraine reminds that the list of states (territories) is used for the purpose of recognizing business transactions of a taxpayer as controlled transactions in accordance with the provisions of sub-clause 39.2.1.1 of sub-clause 39.2.1 of clause 39.2 of Article 39 of the Tax Code of Ukraine.

The taxpayers who, in the reporting year, conducted business transactions with non-residents registered in the states (territories) included in the list of states (territories) or who are residents of these states, taking into account the criteria provided for in sub-clause 39.2.1.7 of sub-clause 39.2.1 of clause 39.2 of Article 39 of the Tax Code of Ukraine, are obliged to submit a Report on Controlled Transactions by October 1 of the year following the reporting year, as well as to prepare and store transfer pricing documentation and submit it at the request of the central executive body implementing the state tax policy within 30 calendar days from the date of receipt of the relevant request.