Telegram 
Viber 
Whatsapp 
Messenger New Pricing Law Awaits Signature
Awaiting the President’s signature, the Law on transfer pricing contains many interesting ideas and innovations, but there are still some reservations.
Awaiting the President’s signature, the Law on transfer pricing contains many interesting ideas and innovations, but there are still some reservations.
Under the new law, the concept of transfer pricing involves determining the arm’s length price based on transactions that are considered controlled. These may include operations of residents:
– with non-residents originating from low-tax jurisdictions;
– with non-resident related parties;
– with residents who are related to persons in cases where those:
- Declared a loss on their tax return for the previous year;
- Apply special tax regimes in the current year;
- Pay VAT or profit tax at a rate different from the standard rate or are not payers of such taxes.
It is important that transactions with such categories of persons are taken into account only if, for the taxpayer, the total amount of such transactions with each counterparty is at least 50 million per year.
Thus, transactions that meet the specified criteria will be checked for the correctness of taxes paid on them according to the rules defined in the Code. Also, according to the law, the review should not concern the determination of rules for the payment of other tax liabilities. If signed by the President, the changes will begin to take effect from the beginning of autumn 2013.