The controlled transactions report for 2025 is due by 1 October 2026 (clause 39.4.2 of the Tax Code of Ukraine). It is filed by corporate income tax payers whose annual revenue exceeded UAH 150 million and whose transactions with a related non-resident or another counterparty listed in Article 39 exceeded UAH 10 million with a single counterparty during the year (sub-clause 39.2.1.7).
Key points
- Controlled transactions are those with related non-residents, with non-residents from the Cabinet of Ministers lists, through non-resident commission agents, and between a non-resident and its permanent establishment (sub-clause 39.2.1.1).
- Both thresholds apply together: taxpayer revenue above UAH 150 million and transactions with one counterparty above UAH 10 million, net of indirect taxes.
- The report and the notice of participation in a multinational group are due by 1 October. Transfer pricing documentation is prepared for every year and submitted within 30 calendar days of a State Tax Service request (sub-clauses 39.4.3, 39.4.4).
- The penalty for not filing the 2025 report is 300 subsistence minimums, or UAH 908,400 (clause 120.3).
Which transactions are controlled
A controlled transaction is a business transaction of a corporate income tax payer that may affect its taxable profit and falls within the closed list of sub-clause 39.2.1.1 of the Tax Code:
- transactions with related non-residents (relationship criteria are in sub-clause 14.1.159, including ownership of 25% or more);
- foreign trade sales or purchases of goods or services through non-resident commission agents;
- transactions with non-residents registered in states or territories on the Cabinet of Ministers list under sub-clause 39.2.1.2;
- transactions with non-residents whose legal form is on the Cabinet of Ministers list under sub-clause 39.2.1.2-1;
- transactions between a non-resident and its permanent establishment in Ukraine.
Sub-clause 39.2.1.5 also covers chains: if goods pass through intermediaries that perform no significant functions, use no significant assets and bear no significant risks, the transaction is treated as controlled between the taxpayer and the final non-resident. Transactions with related Ukrainian residents are outside the list.
The UAH 150m and UAH 10m thresholds
Under sub-clause 39.2.1.7, two conditions must be met in the same tax year: the taxpayer's annual revenue from all activities, measured under accounting rules, exceeds UAH 150 million net of indirect taxes; and the volume of transactions with each counterparty exceeds UAH 10 million net of indirect taxes. The volume is measured at arm's length prices (sub-clause 39.2.1.9), so an understated contract price does not lower it. For transactions between a non-resident and its permanent establishment, only the UAH 10 million threshold applies.
Report, documentation and group notice
| Document | Who files | Deadline | Tax Code |
|---|---|---|---|
| Controlled transactions report | Taxpayer with controlled transactions | 1 October of the following year | cl. 39.4.2 |
| Notice of participation in a multinational group | Group member with controlled transactions | 1 October of the following year | cl. 39.4.2, 39.4.2.2 |
| Transfer pricing documentation | Prepared by every taxpayer with controlled transactions | 30 calendar days after a request | 39.4.3–39.4.6 |
| Master file | Member of a group with consolidated revenue of EUR 50 million or more | 90 calendar days after a request | 39.4.7 |
| Country-by-country report | Member of a group with consolidated revenue of EUR 750 million or more, in the cases of 39.4.10 | Under 39.4.10 | 39.4.10, 39.4.10-2 |
The documentation explains why prices meet the arm's length principle: the parties, group structure, functions, value chain, the method chosen and its justification (sub-clause 39.4.6). A documentation request may be sent from 1 October of the year following the transaction (sub-clause 39.4.5). The international side of a group, including the master file and CbCR, is handled by our sister company in Innova Consulting Group, crystal.tax.
Penalties
Penalties are set in subsistence minimums for an able-bodied person as of 1 January of the reporting year (Article 120). For 2025 reporting this is UAH 3,028 (Article 7 of Law No. 4059-IX); for 2026 it is UAH 3,328 (Article 7 of Law No. 4695-IX). The minimum wage is not the base here.
Penalties for 2025 reporting (SM = UAH 3,028)
| Breach | Penalty | UAH | Tax Code |
|---|---|---|---|
| Report not filed | 300 SM | 908,400 | cl. 120.3 |
| Report filed late | 1 SM per day, up to 300 SM | 3,028 per day, up to 908,400 | cl. 120.6 |
| Transactions missing from the report | 1% of undeclared transactions, up to 300 SM | up to 908,400 | cl. 120.4 |
| Documentation not submitted | 3% of undocumented transactions, up to 200 SM | up to 605,600 | cl. 120.3 |
| Documentation submitted late | 2 SM per day, up to 200 SM | 6,056 per day, up to 605,600 | cl. 120.6 |
| Group notice not filed | 100 SM | 302,800 | cl. 120.3 |
If a document is still missing 30 days after the penalty payment deadline, a further 5 SM per day applies, up to 300 SM (clause 120.3). Paying a penalty does not remove the filing obligation. For 2026 reporting, the penalty for not filing the report rises to UAH 998,400.
If the deadline has passed
- File the report as soon as possible: the late filing penalty grows by 1 SM for each calendar day, capped at 300 SM.
- Correct errors with the right type of report: a new report before 1 October, an amended report after it (sub-clause 39.4.2.1). An amended report does not remove penalties under clauses 120.4 and 120.6.
- Review prices. If terms deviate from the arm's length principle, the taxpayer may adjust the price and tax liabilities itself (sub-clause 39.5.4.1).
- Prepare the documentation before a request arrives, since only 30 calendar days remain after it.
How Key Solutions helps
We check the thresholds and counterparty list and prepare the controlled transactions report, the group notice and the transfer pricing documentation. See transfer pricing in Ukraine for the scope of work, or book tax advice for a one-off question. Fees are agreed individually and depend on the number of controlled transactions and counterparties. Earlier changes to the penalty rules are covered in our note on transfer pricing report penalties. To discuss your case, use the contacts page.
Legal basis
- Article 39 of the Tax Code of Ukraine No. 2755-VI: controlled transactions, thresholds, report, documentation, deadlines.
- Clauses 120.3, 120.4, 120.6 of the Tax Code: penalties.
- Article 7 of Law No. 4059-IX and Article 7 of Law No. 4695-IX: subsistence minimum for 2025 and 2026.
Frequently asked questions
What is transfer pricing in simple terms?
Transfer pricing is the set of rules in Article 39 of the Tax Code requiring prices in transactions with related and certain other non-residents to match market terms, the arm's length principle. If a price deviates and reduces tax, the State Tax Service assesses additional corporate income tax.
Does a company with no non-resident transactions file the report?
No. Every type of controlled transaction in sub-clause 39.2.1.1 involves a non-resident or a non-resident's permanent establishment. Without such transactions during the year, no controlled transactions report is filed, even if revenue exceeds UAH 150 million.
Do transactions with a related Ukrainian resident count?
No. The current wording of sub-clause 39.2.1.1 does not include transactions with related residents. Controlled transactions are those with related non-residents, non-residents from the Cabinet of Ministers lists, non-resident commission agents and permanent establishments of non-residents.
What is the penalty for not filing the report?
300 subsistence minimums for an able-bodied person as of 1 January of the reporting year (clause 120.3). For the 2025 report this is UAH 908,400; for the 2026 report, UAH 998,400. If the report is still missing 30 days after the penalty payment deadline, 5 subsistence minimums per day are added, up to 300.
Can an amended report be filed?
Yes. Before 1 October a new report replaces the earlier one; after 1 October an amended report is filed (sub-clause 39.4.2.1). The amended report does not remove penalties under clauses 120.4 and 120.6, and it cannot be filed for a period under documentary tax audit.
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