EBA Dnipro FinTax Solutions: Transfer Pricing

23/ 03/ 2023

Last week, EBA Dnipro Financial & Tax Committee held the first meeting of the EBA Dnipro FinTax Solutions project, during which webinar participants discussed transfer pricing with Leonid Karpov and experts from the Eastern Interregional Office of the State Tax Service on Transfer Pricing. During the event, they outlined relevant issues related to the automatic exchange of intergovernmental reports (Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports). Thus, the report in the context of countries of the international group of companies is compiled for the financial year established by the parent company of the international group of companies, which may not coincide with the calendar year, and is submitted no later than twelve months after the last day of such a financial year (if there is no information about the financial year established by the parent company of the international group of companies – within twelve months after the end of the calendar year). The first such report must be submitted for the year 2022. Regarding the 30% adjustment, they discussed the position of the courts and the main insights highlighted by Leonid Karpov: ✅ Full documentation is not mandatory. ✅ Information from various websites where proposals are published is permissible. ✅ If the tax authority did not prove that the range determined by the taxpayer on websites is erroneous, then the taxpayer is correct.

During the event, they outlined relevant issues related to the automatic exchange of intergovernmental reports (Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports).

Thus, the report in the context of countries of the international group of companies is compiled for the financial year established by the parent company of the international group of companies, which may not coincide with the calendar year, and is submitted no later than twelve months after the last day of such a financial year (if there is no information about the financial year established by the parent company of the international group of companies – within twelve months after the end of the calendar year). The first such report must be submitted for the year 2022.

Regarding the 30% adjustment, they discussed the position of the courts and the main insights highlighted by Leonid Karpov:

✅ Full documentation is not mandatory.

✅ Information from various websites where proposals are published is permissible.

✅ If the tax authority did not prove that the range determined by the taxpayer on websites is erroneous, then the taxpayer is correct.