Digitalization of the transfer pricing tax control processes in the State Tax Service

State Tax Service of Ukraine, with the EU4PFM support, taking into account requirements of Article 39 of the Tax Code of Ukraine and in order to implement the National Revenue Strategy until 2030, approved by Resolution of the Cabinet of Ministers of Ukraine № 1218-p as of 27.12.2023, has created a unique IT solution: "Automated system of work with large data sets for analyzing the transfer pricing risks" (Big Data Transfer Pricing) to improve tax control over the transfer pricing.

To combat tax evasion by the transnational corporations and withdrawal of funds to tax harbors, due to which Ukraine loses billions of UAH of taxes, the State Tax Service has developed innovative and modern IT solution.

It should be noted that similar software products are used by only a few countries in the world.

With a help of the latest development of the State Tax Service, it is now possible to more effectively analyze large volume of data from customs clearances, tax and other reporting, as well as information from the international analytical resources.

Using over a hundred automated risk-based algorithms, the IT system will help to quickly identify the transfer pricing risks.

Transparency and use of unified approaches and digital technologies in tax control ensure fairness and equal conditions for business.

Introduction of this IT system allows to:

- improve risk-based approaches;

- unify, standardize and automate tax control processes from the transfer pricing;

- reduce a number of the tax transfer pricing violations and litigation;

- minimize impact of the human factor.

EU4PFM continues to support the State Tax Service in implementing modern progressive practices and IT technologies aimed at increasing transparency and digitalization.