Ministry of Finance: Important aspects of application of the updated list of states for transfer pricing purposes

The Ministry of Finance of Ukraine reminds that the updated list* of states (territories) for transfer pricing purposes will be applied for the first time from January 1 of the reporting year 2025.

This is provided for by subparagraph 2 of paragraph 4 of Section II "Final Provisions" of the Law of Ukraine No. 3813-IX dated 18.06.2024 "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".

When determining the list of states for transfer pricing purposes, the Government of Ukraine takes into account the following criteria:

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 the FATF recommendations;
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 State Tax Service.

These changes are important for Ukrainian business as they relate to effective risk management in the area of transfer pricing to ensure the financial stability of companies.

* The list was approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1505 "On Amendments to the Annex to the Resolution of the Cabinet of Ministers of Ukraine No. 1045 dated December 27, 2017" dated December 27, 2024.

CMU