The list of states (territories), transactions with residents of which are recognized as controlled for TP purposes, will be adjusted
The website of the Ministry of Finance has published a draft resolution of the Cabinet of Ministers of Ukraine "On Amendments to the Annex to the Resolution of the Cabinet of Ministers of Ukraine dated December 27, 2017 No. 1045" (hereinafter - the draft act).
The purpose of the draft is 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 No. 3813-IX dated 18.06.2024.
As a reminder, according to subparagraph 2 of paragraph 7 of Section I of Law No. 3813-IX, the criteria for compiling the list of states (territories) for the purposes of transfer pricing control provided for in subparagraph 39.2.1.2 of the TCU were updated.
In accordance with the provisions of Law No. 3813-IX, the following criteria are taken into account when determining the list of states (territories):
► states (territories) included in the list of offshore zones approved by the Cabinet of Ministers of Ukraine;
► states (territories) included in the list of states (jurisdictions) that do not implement or improperly implement recommendations of international, intergovernmental organizations involved in combating legalization (laundering) of proceeds of crime or terrorist financing or financing of proliferation of weapons of mass destruction;
► states (territories) whose competent authorities, based on the results of two consecutive reporting (tax) periods (years), do not ensure timely and complete exchange of tax and financial information (including information on the ultimate beneficial owner) at the request of the central executive body implementing the state tax policy.
Subparagraph 2 of paragraph 4 of Section II "Final Provisions" of Law No. 3813-IX provides for the list of states (territories) for the purposes of subparagraph "c" of subparagraph 39.2.1.1 of the TCU as amended by this Law to be finalized by January 1, 2025, for the purpose of its use from January 1 of the reporting year 2025.
Therefore, it became necessary to amend the Annex to the Resolution of the Cabinet of Ministers of Ukraine No. 1045 dated 27.12.2017 "On Approval of the List of States (Territories) Meeting the Criteria Set by Subparagraph 39.2.1.2 of the Tax Code and Invalidation of the Resolution of the Cabinet of Ministers of Ukraine No. 977 dated 16.09.2015" (hereinafter - Resolution No. 1045).
The Draft Law provides for amendments to the Annex to Resolution No. 1045, namely to bring the list of states (territories), transactions with residents of which are recognized as controlled for transfer pricing purposes, in line with Law No. 3813-IX.
The following list of states (territories) that meet the criteria set forth in subpara. 39.2.1.2 of the TCU is proposed:
American Samoa
Anguilla
Principality of Andorra
Antigua and Barbuda
Aruba
Commonwealth of the Bahamas
Barbados
Belize
Bermuda
British Virgin Islands
Republic of Vanuatu
Virgin Islands of the United States of America
Guernsey
Gibraltar
Grenada
Guam
Jersey
Commonwealth of Dominica
Islamic Republic of Iran
Cayman Islands
Democratic People's Republic of Korea
Cook Islands
Republic of Liberia
Republic of Maldives
Republic of the Marshall Islands
Isle of Man
Principality of Monaco
Montserrat
Republic of the Union of Myanmar
Republic of Namibia
Republic of Nauru
Netherlands Antilles
Niue
Alderney
Republic of Palau
Republic of Panama
Puerto Rico
Independent State of Samoa
Republic of Seychelles
Saint Vincent and the Grenadines
Saint Kitts and Nevis
Saint Lucia
St. Maarten (Dutch part)
Turks and Caicos Islands
Republic of Trinidad and Tobago
Republic of Fiji
According to the text of the draft, the resolution will enter into force on January 1, 2025, but not earlier than the day of its publication.