On 13 May 2014 Parliament passed the Law*, which envisages the following important changes in the transfer pricing regulations:
 - postponement of the deadline for 2013 reporting on controlled transactions from 1 May 2014 to 1 October 2014;
 - significant reduction of penalties for non-reporting: 100 minimum wages as of 1 January of the reporting year for non-filing of the report on controlled transactions, and 10 minimum wages as of 1 January of the reporting year for non-filing of the transfer pricing documentation;
 - the fines for transfer pricing adjustments will constitute UAH 1 for the period from 1 September 2013 until 31 December 2014;
 - the fines for transfer pricing self-adjustments for the period from 1 September 2013 until 31 December 2014 will not apply. 
As a result, companies that filed a report on controlled transactions by 1 May 2014 need not take any action; however, they can amend their returns with no penalty.
We will continue monitoring this issue and keep you updated on further developments in this area. 

* The Draft Law "On changes to the Tax Code of Ukraine in respect of the reporting period on transfer pricing" No. 4527 dated 24 March 2014. 

 
Contacts:

Ron Barden, Partner & TLS Leader, ron.j.barden@ua.pwc.com
Slava Vlasov, Partner, Tax and Legal Services, slava.vlasov@ua.pwc.com
Svetlana Bilyk, Director, Tax and Legal Services, svetlana.bilyk@ua.pwc.com
Olga Trifonova, Manager, Tax and Legal Services, olga.trifonova@ua.pwc.com

75 Zhylyanska Street | Kyiv | Tel:  +380 44 490 6777 | Fax: +380 44 490 6738 | pwc.ukraine@ua.pwc.com  |  www.pwc.com/ua 

 This flash report is produced by PricewaterhouseCoopers’ tax and legal services department. The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
©2014 Limited liability company «PricewaterhouseCoopers». All rights reserved. PwC refers to the Ukrainian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

 We will be sending additional Flash reports as issues arise.  If you do not wish to receive these Reports, please advise by return e-mail (myroslava.suprunyuk@ua.pwc.com).  Alternatively, if there is someone else in your company to whom we should send our Alerts, please let us know.

We are pleased to inform that this Flash report is also available both in Ukrainian and Russian and can be sent to you upon request.
Ми раді повідомити, що цей  Flash report також доступний українською і російською мовами і може бути наданий Вам за запитом.
Мы рады сообщить, что этот Flash report также доступен на украинском и русском языках и может быть предоставлен Вам по запросу.