Kharkiv Finance & Taxes

21/ 09/ 2017

Since the launch of the transfer pricing (TP) rules and up to this day, the procedure for controlled operations’(CO)determination has been changing every year. During this period, the SFS has fined the VAT payers for more than 140 mil UAH. The ILF Law Firm experts Olena Kalinina, Julia Lavrekha and Arsen Buchkovsky told how to determine CO, fend off the SFS false claims and avoid confusion due to the changes in the framework of the topic ‘TP. Controlled Operations’Determination, Accountancy and Liability’. Indeed, the 2017 key novelties are the following. Firstly, the operations held by the company with an annual income of 150 mil UAH per year have been recognized as controlled. Secondly, the scope of economic transactions with one counterpart has been enlarged from 5 to 10 mil UAH per year. Thirdly, the set of people whose operations are considered to be controlled has been expanded as well. Speaking about the TP fines – their amount has changed insignificantly, but they have been differentiated with the list extension. The meeting was held in a workshop format, so the participants communicated with the speakers, shared their own experience in the TP field and together they searched for the variants of tasks’ resolution.

Indeed, the 2017 key novelties are the following. Firstly, the operations held by the company with an annual income of 150 mil UAH per year have been recognized as controlled. Secondly, the scope of economic transactions with one counterpart has been enlarged from 5 to 10 mil UAH per year. Thirdly, the set of people whose operations are considered to be controlled has been expanded as well. Speaking about the TP fines – their amount has changed insignificantly, but they have been differentiated with the list extension.

The meeting was held in a workshop format, so the participants communicated with the speakers, shared their own experience in the TP field and together they searched for the variants of tasks’ resolution.