Changes in transfer pricing: a new list of low-tax states is approved
Last December, the Cabinet of Ministers of Ukraine adopted the Resolution No. 1045. The resolution shall become effective on 1 January 2018.
The new regulation changed the list of low-tax countries. Now it includes Guadeloupe, Morocco, Malta, which had been excluded by the decision of the Cabinet of Ministers in 2015. Some countries, however, are still off the list (French Havana, Lesotho).
All transactions with the counterparties registered in the enlisted states will be qualified as controlled if the price criterion stipulated by the Tax Code of Ukraine is met.
As a result, the previous resolution by the Cabinet of Ministers No. 977 as of 16 September 2015 is now ineffective.