STUDY OF LEGISLATIVE CHANGES OF THE TRANSFER PRICING IN UKRAINE

Abstract

The article examines legislative changes in the regulation of transfer pricing in Ukraine. An analysis of the quantitative and value indicators of the reports submission on controlled transactions was carried out, which indicates an increase in the volume of controlled transactions and, accordingly, the development of transfer pricing in Ukraine. An analysis of the structure of controlled transactions in 2021 by subject of transactions was carried out, that has showed that more than 85% of transactions are transactions with goods and banking services. The main states in which non-resident counterparties of controlled transactions with goods are registered are Switzerland, and for banking transactions – Austria and France. The legislative basis on transfer pricing was studied and the main criteria for recognizing transactions as controlled were systematized. The value criteria for recognizing transactions as controlled are the annual turnover of the taxpayer's total income and transactions with an individual non-resident, which should make up more than UAH 150 million and more than UAH 10 million. per year respectively. A three-level transfer pricing reporting model, which has been introduced into national legislation since 2021, is presented. According to the model, reporting consists of transfer pricing documentation (report on controlled transactions and Notice of participation in an international group of companies), global transfer pricing documentation (master file) and a report by country of an international group of companies. The implementation of a three-level documentation model will help reduce the number of disputes and simplify the settlement of disputes between tax authorities and taxpayers in the field of transfer pricing, as well as create competitive, equal opportunities for doing business in Ukraine and attracting investments to the state's economy. The types of fines and their cost for violations in the field of transfer pricing were considered. An analysis of audits of taxpayers who carried out controlled transactions was performed. The results of the analysis showed that in 2021-2022, more than UAH 11 million in fines were charged, and UAH 1.5 billion were additionally charged for violating the requirements of the tax legislation regarding the timeliness and completeness of the declaration of controlled transactions, as well as the submission of transfer pricing documentation. income tax and UAH 0.01 billion of value added tax and reduced losses by UAH 7.5 billion. Therefore, Ukrainian legislators need to keep working on improving the provisions of transfer pricing legislation in order to harmonize them with the global trends.