Criteria for recognizing transactions as controlled have been updated since 2025
Press service of the State Tax Service of Ukraine , published 21 February 2025 at 17:46 Chapter: News
Controlled transactions include business transactions that may affect the corporate income taxation object (for the of Diia city residents – on the financial result before taxation), namely:
- with related non-resident entities, as well as through the use of another entity in the supply chain without significant functions, assets and risks;
- through non-resident commission agents;
- with non-residents registered in states (territories) included in the list of the low-tax jurisdictions;
- with non-resident counterparties whose organizational and legal forms provide for non-payment of the corporate tax;
- between non-resident and its permanent establishment in Ukraine.
In this case, transactions are recognized as controlled if they simultaneously meet two criteria:
- total annual income of the taxpayer exceeds 150 million UAH (except for transactions carried out between non-resident and its permanent establishment in Ukraine);
- volume of the taxpayer’s transactions with each counterparty exceeds 10 million UAH for the reporting year.
Criteria for recognizing entities as related due to the so-called economic connection (interaction with the counterparty of 75% of the total volume of foreign economic activity and 50% of the amount of income/expenses) have been expanded since 2025.
New approaches to the formation of lists of countries (territories) for the transfer pricing purposes have also been introduced. Updated lists will apply from January 1, 2025.
Detailed information regarding criteria for recognizing transactions as controlled can be found at the link: https://tax.gov.ua/en/mass-media/news/855840.html
For reference.
Law of Ukraine № 3813-IX as of 18.06.2024 “On amendments to the Tax Code of Ukraine regarding the tax administration peculiarities during the martial law for taxpayers with a high level of voluntary compliance with tax legislation” expanded criteria for recognizing entities as related due to the so-called economic connection from January 1, 2025.
New approaches to the formation of lists were introduced according to Resolutions of the Cabinet of Ministers of Ukraine № 1307 as of 15.11.2024 “On amendments to Resolution of the Cabinet of Ministers of Ukraine № 480 as of 04.07.2017” and № 1505 as of 27.12.2024 “On amendments to Resolution of the Cabinet of Ministers of Ukraine № 1045 as of 27.12.2017”.
Information regarding the application of updated lists for the transfer pricing purposes from January 1, 2025 is on the official website of the Ministry of Finance of Ukraine: