Starting from 2025, the criteria for recognizing transactions as controlled have been updated

Controlled transactions include business transactions that may affect the object of corporate income tax (for residents of Diia City - the financial result before tax), namely those carried out

- with non-resident related parties, as well as through the use of another person in the supply chain without significant functions, assets and risks

- through non-resident commission agents;

- with non-residents registered in states (territories) included in the list of low-tax jurisdictions;

- with non-resident counterparties whose organizational and legal forms provide for non-payment of corporate tax;

- between a non-resident and its permanent establishment in Ukraine.

In this case, transactions are recognized as controlled if they simultaneously meet two criteria:

- the total annual income of the taxpayer exceeds UAH 150 million (except for transactions between a non-resident and its permanent establishment in Ukraine)

- the volume of the taxpayer's transactions with each counterparty exceeds UAH 10 million for the reporting year.

Starting from 2025, the criteria for recognizing persons as related have been expanded to include the so-called economic relationship (75% of the total volume of foreign economic activity and 50% of the amount of income/expenses).

New approaches have also been introduced to the compilation of lists of states (territories) for transfer pricing purposes. The updated lists will apply from January 1, 2025.

Detailed information on the criteria for recognizing transactions as controlled is available at the link: https://tax.gov.ua/media-tsentr/novini/855824.html.

For reference.

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" expanded the criteria for recognizing persons as related by the so-called economic relationship starting from 01.01.2025.

New approaches to the formation of the lists were introduced in accordance with the resolutions of the Cabinet of Ministers of Ukraine No. 1307 "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 480 dated 04.07.2017" dated 15.11.2024 and No. 1505 "On Amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 1045 dated 27.12.2017" dated 27.12.2024.

On the application of the updated lists for transfer pricing purposes from January 1 of the reporting year 2025 on the official website of the Ministry of Finance.