The Committee on Taxation and Customs Policy recommends that the Verkhovna Rada of Ukraine should adopt as a basis the draft law on amendments to the Tax Code of Ukraine re refining tax control over transfer pricing
25 December 2014, 10:45
During the meeting on December 24, Committee members considered two bills registered under No. 1264 and No. 1264-1.
In the course of consideration of the bill on amendments to the Tax Code
of Ukraine (re refining tax control over transfer pricing), registered under
No. 1264, it was mentioned that the bill aims at unifying provisions pertaining
to tax control over transfer pricing with the internationally recognized OECD
Transfer Pricing Guidelines for Multinational Enterprises and Tax
Administrations. Having considered the bill on amendments to the Tax Code of Ukraine re refining tax control over transfer pricing (Reg. No. 1264-1), the people’s deputies noted that this bill aims at refining the existing system of state regulation of transfer pricing; eliminating contradictions; and concretizing provisions that negatively affect implementation of tax policy with consideration of international experience and optimal combination of fiscal and regulatory function of taxation.
The bill, in particular, suggests significantly changing principles of transfer pricing.
Generally upholding the new concept of transfer pricing, Committee members noted that its implementation requires broad public discussion and adjustment with scientists, experts and the business.
Following the results of consideration, the Committee recommends the Verkhovna Rada adopt as a basis the draft law registered under No. 1264-1, having, however, some of the provisions excluded.