Transfer pricing
Ukraine introduced TP rules on September, 1, 2013. TP tax control is based on the principle of an "arm's length" transaction. This is the same principle adopted by members of the OECD and by over 70 other non-OECD countries. It is recommended to establish TP for tax purposes and anticipating an increase of tax liabilities among related parties to the level of tax liabilities of unrelated parties in case of compliance with the commercial and/or financial conditions of their operations conducted.
The main methodological reference, the native documents in the field of TP tax regulation are the OECD Guidelines on TP for multinational enterprises and tax administrations, the main rules of which are implemented in Article 39 of the Tax Code of Ukraine (TCU).
Gold Price Company provides services on the preparation of documentation concerning the compliance of operations controlled by the principle of an "arm's length" transaction. We use modern computerized databases while preparing calculation reports. Most of the operations are checked using the OECD’s Method 301 (comparable uncontrolled price method). In some cases, other methods regulated by the TCU are used. In case a determination of compliance of the cost of an operation regulated by the "arm's length" transaction principle by methods specified in Article 39.3.1 of the TCU is not possible, an independent valuation of the object of the operation is carried out in accordance with the current legislation of Ukraine.