Ukraine: List of legal forms of nonresidents extended to include GmbH & Co. KG

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published on 21. January 2020


On January 1, 2020, the changes to the Resolution of the Cabinet of Ministers of Ukraine No. 480 dated July 4, 2017 (hereinafter referred to as Resolution No. 480) became effective. The changes concern legal forms of business entities in Austria, Germany, and Poland, and are relevant for Ukrainian taxpayers in connection with tax adjustment of financial result before tax and transfer pricing compliance.

The following legal forms were added to the list:

  1. Austria: GmbH & Co.KG.
  2. Germany: GmbH & Co.KG, AG & Co.KG, UG & Co.KG, GmbH & Co. KGaA, AG & Co. KGaA, GmbH & Co. OHG.
  3. Poland: Sp.zo.o.S.K., Sp.zo.o.S.J.

Starting from January 1, 2020, Ukrainian taxpayers purchasing goods (works, services) from nonresidents established in one of the above-mentioned legal forms shall increase the financial result by 30 percent of the value of the goods, including fixed assets (except for the right of lease), works, services purchased from such nonresidents.


The adjustment of the financial result does not apply to the transactions that are considered as “controlled transactions” according to Article 39 of the Tax Code. No adjustment should also be made where the transactions are not controlled and the taxpayer confirms, in accordance with transfer price rules set out in Article 39 of the Tax Code, that the prices in these transactions correspond to the arm's length principle.


The taxpayers should take into account that the business transactions with nonresidents established in the legal form included in the list contained in the Resolution No. 480 can be considered as controlled transactions, even if such nonresidents are not related parties with the Ukrainian taxpayer. If the business transactions with such nonresidents are considered as controlled transactions, the taxpayer shall submit a report on controlled transactions for the year in which the transactions took place and maintain transfer pricing documentation for such transactions.

BThe taxpayers are advised to check the legal forms of their counterparties, especially those registered in Austria, Germany, and Poland. If the legal form of the counterparty is listed in the Resolution No. 480, the taxpayer shall comply with the requirements of the Tax Code regarding the adjustment of the financial result or reporting and documenting of the controlled transactions.

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