The Cabinet of Ministers of Ukraine has approved a new list of Low-Tax Jurisdictions that are the subject to transfer pricing control

29 September 2015
Iryna Kalnytska
GOLAW Law Firm Senior Associate

On September 16, 2015 The Cabinet of Ministers of Ukraine approved the Instruction №977-r that  specifies the new list of the low tax jurisdictions  -  states or territory with a corporate tax rate at least 5 percentage points lower than Ukraine's general corporate rate of 18 percent.  In other words Ukraine has removed several jurisdictions from its list of low-tax jurisdictions for transfer pricing purposes.

Such countries as  Georgia, Guadeloupe, the Lebanese Republic, the Grand Duchy of Luxembourg, the Republic of Malta, the Kingdom of Morocco, the United Arab Emirates,  the Republic of Singapore, the Swiss Confederation, Jamaica were excluded from the list. Consequently, the operations with   non-residents registered in the above-mentioned countries will not be determined as regulated operations for transfer pricing control purposes.

For Ukrainian business the amendments  are substantial and will facilitate cooperation with such popular jurisdictions as Switzerland and Luxemburg.