The problems of transfer pricing in Ukraine
Journal Title: Формування ринкових відносин в Україні. Збірник наукових праць - Year 2018, Vol 4, Issue 4
Abstract
Transfer pricing was first legislated by the US Tax Code. An unbiased assessment of the terms of the transaction of the interrelated participants was embodied in the concept of "extended hand". Different mechanisms of transfer pricing control operate in developed countries. Transfer pricing became relevant in Ukraine with the development of financial and industrial groups. The difference in the tax burden of different countries and the redirection of the total income for taxation to countries with lower taxes or tax avoidance altogether allows international companies to significantly reduce their tax burden. Such a simple and widespread scheme for reducing tax burden requires special attention from any state. Control over transfer pricing in Ukraine was launched in 2013. The principle of "extended hand", the criteria for mutual "connection of persons", the content of controlled operations were reflected in the Tax Code of Ukraine in 2015. The systematization of the regulatory framework for transfer pricing in Ukraine has been carried out in accordance with international standards and Recommendations of the Organization for Economic Cooperation and Development (OECD) for multinational corporations and tax services. The controlled volume of business operations now exceeds UAH 10 million. Evading large taxpayers of income tax from paying in preferential tax regimes or reducing its rates by five percent and more than in Ukraine is now controlled by the fiscal service. Large taxpayers can enter into an agreement with the fiscal service of Ukraine for the transparent formation of transfer prices and the conduct of tax operations in the territories of preferential tax regimes.
Authors and Affiliations
O. ANDRUS
Keywords
Related Articles
- EP ID EP363423
- DOI 10.5281/zenodo.1252290
- Views 117
- Downloads 0
Theoretical aspects of influence of agricultural enterprises on the rural areas development under conditions of modern agrarian reforms
The article deals with theoretical approaches to solving of the problems of rural areas development through improving of the efficiency of agricultural enterprises activities. New forms of economic activities in the coun...
Modeling of market land value with accounting the results of their mass assessment
The deals with the modeling of market value of land on the basis of taking into account the results of their mass assessment are reviewed in the article. The list of factors that may affect the market value of land is de...
Modern problems of reforming the pension system in Ukraine
The subject of the study is theoretical and methodological principles of reforming the pension system in Ukraine. The purpose of the study is to identify the most significant problems of the development of the pension s...
Inclusive growth as an answer on modern challenges of globalization
The subject of the study – methodological aspects of inclusive growth and development measurement. The purpose of the study is the conceptual definition of inclusive growth in the format of its interpretation by influent...
Globalization as a factor of the world structural development
The article defines the term “globalization” from the perspective of various scientists. The views of scholars on the nature of globalization and ways of its impact on the economy are considered. The main directions of g...