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Ukrainian Verkhovna Rada accepts a Draft Law on Transfer Pricing at the second reading


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On Thursday 4 July 2013, the Verkhovna Rada of Ukraine accepted a Draft Law on Transfer Pricing No. 2515 (hereinafter, “the Draft Law”) at the second reading. This decision was supported by the votes of 231 People’s Deputies. The Draft Law has been sent to the President for signature.

The adopted Draft Law may be called a compromise between the version insisted on by the Ministry of Revenues and Duties and proposals suggested by representatives of business, since these options were only partially considered. Unfortunately, the Ministry took a principled stand on a range of critical issues, and these remained unchanged.

It should be noted that the effective date of the Draft Law was changed at the last moment. Therefore, once the Draft Law has been signed by the President of Ukraine, new transfer pricing rules will come into effect from 1 September 2013 (instead of 1 January 2014, as business representatives had insisted).

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