Predicted transfer pricing policy: State Tax Service reminds of the possibility of concluding АРА agreement

Press service of the State Tax Service of Ukraine, published 28 March 2025 at 11:25 Chapter: News

One of the modern tools for resolving disputes within framework of bilateral agreements on the avoidance of double taxation is a procedure for prior agreement on pricing in controlled transactions (APA, Advance Pricing Arrangement).

It allows large taxpayers to conclude agreement with the State Tax Service of Ukraine, which determines conditions for such taxpayer to carry out controlled transactions for a limited period of time.

Benefits of the АРА agreement

- If it is complied with, it protects against additional tax liabilities, fines and penalties for controlled transactions specified in the agreement;

- Guarantees stability of the contract terms.

- In case of non-compliance with conditions, the State Tax Service has a right to additionally accrue tax liabilities, fines and penalties for controlled transactions specified in the contract, terms of which do not comply with the "arm’s length" principle.

Documents that regulate АРА

- Tax Code of Ukraine (Paragraph 39.6 Article 39)

- Resolution of the Cabinet of Ministers of Ukraine № 1114 as of 28.10.2021 "On approval of Procedure for preliminary coordination of pricing in controlled transactions, results of which lead to the conclusion of contracts of the unilateral, bilateral and multilateral essence for the transfer pricing purposes".

Reminder! Transfer pricing rules in Ukraine, introduced since 2013, are a tool to combat tax evasion and ensure stability of the budget revenues.