Cabinet adds Austria, Turkmenistan, Hong Kong to states subject to transaction control

The Cabinet of Ministers of Ukraine has added Austria, Turkmenistan, Hong Kong and Niue to the list of countries transactions with which are subject to control under the administration of the law on transfer pricing.

Corresponding Cabinet decree No. 449 dated May 14 has been posted on the website of the government.

Albania was excluded from the list, bringing the total number of countries in the list to 76.

As reported, the law on amendments to the Tax Code of Ukraine on transfer pricing came into force in Ukraine on September 1, 2013. According to the law, transfer pricing rules apply to controlled transactions with the residents of low-tax jurisdictions (where profit tax rate is lower than the Ukrainian rate by 5 percentage points or more).