Penalties for failing to file transfer pricing reports have changed

Published 6 March 2017. Some rules have changed since; ask us for the current position.

If you have not filed your transfer pricing report on time, you will receive a notice imposing a sanction, that is, a fine that has to be paid within 10 calendar days. The report still has to be filed!

If you are interested in transfer pricing, read our article about the key changes to the rules.

The fine is calculated on the basis of the subsistence minimum (прожитковий мінімум) set as of 1 January.

What happens if you do not pay the fine within 10 days and still do not file the transfer pricing report? You, as the taxpayer, will be fined 5 subsistence minimums. Most importantly, this fine accrues for every day the report remains unfiled!

At the same time, penalties for failing to file and for filing late are not applied together.

In summary

• Under paragraph 120.4 of Article 120 of the Tax Code of Ukraine (Податковий кодекс України), penalties apply to taxpayers for late filing of reports regardless of the reporting period in which the controlled transactions took place. The fine accrues for every day, starting from 1 January 2017.