Specialists of the State Tax Service discoursed about the transfer pricing reporting peculiarities

Representatives of the State Tax Service took part in an online marathon on the topic: "Business in conditions of the martial law. Transfer pricing a day before reporting. In a new way in 2022."

Team of the Transfer Pricing Department of the State Tax Service led by the Director of the Department Kateryna Ryzhenkova answered topical questions of participants of online discussion.

For the most part, the inquirers were interested in procedure for filling in the report on controlled operations and tax control over transfer pricing. Tax officials, answering questions, singled out current transfer pricing issues, in particular, methodological basis for raw materials and intra-group services, ways for taxpayers to avoid control over transfer pricing, choice of a period for calculating profitability and influence of the marital law on analysis of controlled operations.

Having algorithm analyzed in detail for filling in the report on controlled operations recently posted on the web portal of the State Tax Service, the transfer pricing specialists of the State Tax Service presented infographic materials on how to avoid errors filling in the Report on controlled operations.

Inquirers had special interest to questions regarding payment of "constructive dividends", so the participants agreed to hold a separate meeting on the taxation of non-resident incomes.

Kateryna Ryzhenkova noted that team of the Transfer Pricing Department is constantly working on improving information and explanatory work, which is a key to increasing payers’ level of tax literacy on the transfer pricing issues. For this purpose, additional formats of information coverage in a form more convenient for payers are being implemented. Specialists of both territorial bodies and apparatus of the State Tax Service are always ready to provide consulting assistance to payers.

State Tax Service is interested in an open and constructive dialogue with taxpayers and always focuses on self-adjustment of indicators that led to understatement of tax liabilities, as self-detection and timely correction of errors protects taxpayers from the application of fines.

At the end of an online marathon, tax officials once again reminded that the deadline for submitting reporting on controlled operations and reporting on participation in an international group of companies for the 2021 reporting year is due on September 30, 2022.

To help taxpayers, the State Tax Service has developed presentation materials on the algorithm for filling in the report and infographics on the most common errors during its filling in and ways to avoid them, which can be found on the website of the State Tax Service at the following link: https://tax.gov.ua/diyalnist-/transfertne-tsinoutvorenn/prezentatsiyni-materiali/