Starting from January 1, the criteria for related parties will be changed

The Law of Ukraine No. 3813-IX dated June 18, 2024 "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" (hereinafter - Law No. 3813) introduced certain amendments to subparagraph 14.1.159 of the Tax Code, which will come into force on January 1, 2025.

Thus, subparagraph "a" of subparagraph 14.1.159 of the TCU is supplemented with the following paragraphs:

• "the income (revenue) of a resident legal entity from the sale of products (goods, works, services) (net of indirect taxes) to a separate non-resident legal entity or a separate foreign entity without the status of a legal entity (including a non-resident that carries out economic activities through a permanent establishment in Ukraine) during a calendar year amounts to 75 percent or more of the income (revenue) of such resident legal entity from the sale of products (goods, works, services) (net of indirect taxes) to all non-resident
• the cost of products (goods, works, services) purchased by a resident legal entity from another separate non-resident legal entity or a separate foreign entity without the status of a legal entity (including a non-resident that carries out economic activity through a permanent establishment in Ukraine) during a calendar year is 75 percent or more of the cost of products (goods, works, services) purchased by such a person from all non-residents, provided that the amount of such purchase transactions is 50 percent or more of the total cost of the purchase.

Also, in the thirteenth paragraph of subparagraph "c" of subparagraph 14.1.159 of the TCU, the figures "20" are replaced by the figures "25", i.e. the lower limit of the share of ownership of corporate rights of each person in the next legal entity in the chain for determining the relatedness (regardless of the results of multiplication) is increased from 20% to 25%.

Thus, the relatedness of persons is established in accordance with the criteria set forth in subparagraph 14.1.159 of the TCU. These criteria can be conditionally divided into the following groups of relatedness: legal, economic, and family ties.