KPMG held a seminar on “Transfer pricing for IT companies: how to reduce risks of tax inspection?”
The representatives of KPMG have informed IT Committee concerning general information and transfer pricing basics in Ukraine. Covered issues:
- how inspections are been held;
- which documents are necessary to be applied;
- the amounts of penalties and the mechanism of theirs charging;
- what are the risks appearing during transfer pricing inspections,
A part from that, we should note the impressive statistics provided by KPMG experts:
- possible duration of transfer pricing inspection is up to 30 months (9 months in average);
- documentation term of limitation for applying is 7 years;
- penalty for overdue documentation applying is 11000$;
- surcharge for each day is 300$;
- during one inspection according to transfer pricing it is reckoned near 100 m. UAH of penalties in average;
- each fifth documentation request ends up with inspections.
Documentation preparation and criteria of relevant companies’ selection issues were mostly accentuated.