Changes to the Report on Controlled Transactions and Transfer Pricing Annex to CIT Return

In December 2023, the Ministry of Finance of Ukraine made public its orders (Order No. 673 and Order No. 725) introducing changes to transfer pricing reporting, in particular to:

• the form of and the procedure for preparing a Report on Controlled Transactions (hereinafter, the Report on CTs);
• the form of the Transfer Pricing Annex to the CIT Return (hereinafter, the TP Annex).

In terms of its preparation, the Report on CTs was quite a challenging task, given the abundance of data that had to be disclosed. However, current changes have not brought any simplification, rather the opposite. From now on, the Report requires the disclosure regarding, among other things, the following:

• Details of additional agreements and changes in the contract underlying the transaction at issue
• Incoterms for delivery of goods
• The contractual quantity of goods
• The exchange rate as at the date of recognizing the controlled transaction in accounting
• Additional information about a non-resident and its permanent establishment.

The TP Appendix must now include:

• Details of additional agreements and changes in the contract underlying the transaction at issue
• Incoterms for delivery of goods
• The adjusted indicator and units of measurement in sale (purchase) of goods (works, services).

Orders No. 673 and No. 725 will enter into force upon official publication and already apply to the 2023 Report on CTs (it may be presumed that all future TP Annexes will need to be filled out in the new form, in particular regarding the transactions carried out in previous reporting years).

Our team of experts is ready to help with the preparation of the 2023TP documentation, in particular the Report on CTs, taking into account the newly introduced changes.

_{Comments provided by Deloitte experts herein are for information purpose only and should not be used by taxpayers without an in-depth expert analysis on a case-by-case basis.}

_{We will be happy to provide you with our expert advice on the abovementioned matters or any other TP-related issues.}

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