On 28 May 2014, the acting president signed 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. 
The law comes into force on 30 May 2014. 

*The Law "On changes to the Tax Code of Ukraine in respect of the improvement of transfer pricing" No. 1260-VII dated 13 May 2014. 

 
Contacts:

Ron Barden, Partner & TLS Leader, ron.j.barden@ua.pwc.com
Rob Shantz, Legal Partner, rob.shantz@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

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