Transfer Pricing Documentation and Compliance Requirements in Europe | Ukraine

MASTER FILE REQUIREMENTS

01 | Are resident entities required to provide an OECD MF?

Yes – upon request from the State Tax Service of Ukraine. The request can be issued no earlier than 12 months and no later than 36 months after the end of a multinational group’s, to which the Ukrainian resident entity belongs, FY (or, if unknown, after the end of a reporting year). If two or more Ukrainian resident entities belong to the same multinational group, the tax authority will request the MF from only one of them, at its discretion. The State Tax Service of Ukraine will not request a MF if it has already been submitted by another group member.

02 | Monetary threshold for requiring a MF

Consolidated revenue of the multinational group for the preceding FY equals or exceeds the equivalent of EUR 50 million.

03 | Contemporaneous requirement for preparing/filing the MF or for affirmatively reporting the preparation of the MF

There is no requirement to prepare or file the MF contemporaneously or to report its preparation. It must, however, be submitted within 90 calendar days upon request from the State Tax Service of Ukraine. If a Ukrainian resident entity misses this deadline, the State Tax Service of Ukraine may request it from another group member. However, the original Ukrainian resident entity remains obligated to provide the MF. The State Tax Service of Ukraine may request a Ukrainian resident entity to provide, within 30 calendar days of receiving the request, additional information and/or justification of the controlled transaction’s compliance with the arm’s length principle if the previously submitted MF lacks required details as specified by law. This additional information becomes an integral part of the MF.

04 | Penalties for failure to file or provide the MF

Failure to submit the MF results in a fine of 300 times the minimum living wage (MLW) for a working-age person as of January 1 of the tax year, i.e., UAH 998,400 (or approx. EUR 23,000) in 2026. Payment of this fine does not exempt the Ukrainian resident entity from the obligation to submit the MF. Failure to submit the MF, or submitting the MF with a breach of requirements, may also result in a tax audit. Late submission incurs a daily penalty of 3 times the MLW for a working-age person per calendar day, up to a maximum of 300 times the MLW, i.e., UAH 9,984 (or approx. EUR 230) per day up to 998,400 (or approx. EUR 23,000) in 2026. The amount of fines is subject to change, as it is based on the MLW for a working age person, which is updated each year or more often.

05 | Language in which MF needs to be prepared/filed

MF may be prepared in any language, but must be submitted in Ukrainian. Foreign language documents require a Ukrainian translation, but notarisation is not needed. Monetary values may be shown in a currency used by a parent company for the group’s consolidated financial statements.

06 | Additional requirements

The MF must include:

• a. Group structure – organizational chart with entities, ownership, and jurisdictions.
• b. Business overview – key profit drivers, supply/value chains for major products/services, significant intercompany service agreements, functional analysis, and major restructurings.
• c. Intangibles – strategy, key IP, related agreements, TP policies, and major IP transfers.
• d. Financial activities – financing arrangements, entities providing group financing, and related TP policies.
• e. Consolidated financial statements – or equivalent management/tax reports.
• f. APAs and rulings – list and summary of any relevant advance pricing agreements or rulings affecting profit allocation.

LOCAL FILE REQUIREMENTS

01 | Are resident entities required to provide an OECD LF

Yes — upon request from the State Tax Service of Ukraine. The request may be issued no earlier than October 1 of the year following the year in which the controlled transactions occurred.

02 | Monetary threshold for requiring a LF

Ukrainian resident entities follow general monetary thresholds to determine whether transactions are considered controlled.

For controlled transactions between different entities, the thresholds are: a. the taxpayer’s annual income from all activities exceeds UAH 150 million (approx. EUR 3.46 million) (excluding indirect taxes); and b. the volume of controlled transactions with each counterparty exceeds UAH 10 million (approx. EUR 230,700) (excluding indirect taxes).

Separately, for transactions between a parent company and its permanent establishment, the threshold is: a. the volume of controlled transactions exceeds UAH 10 million (approx. EUR 230,700) (excluding indirect taxes).

03 | Contemporaneous requirement for preparing/filing the LF or for affirmatively reporting the preparation of the LF

Ukrainian resident entities engaged in controlled transactions must prepare and retain LF (i.e. TP documentation) for each reporting year. Upon request from the State Tax Service of Ukraine, Ukrainian resident entities must submit LF for the specified controlled transactions within 30 calendar days. The State Tax Service of Ukraine may request a Ukrainian resident entity to provide, within 30 calendar days of receiving the request, additional information and/or justification of the controlled transaction’s compliance with the arm’s length principle if the previously submitted LF lacks required details as specified by law. This additional information becomes an integral part of the LF.

04 | Penalties for failure to file or provide the LF

Failure to submit the LF results in a fine of 3% of the amount of controlled transactions for which LF was not provided, but not more than 200 times the MLW, i.e., UAH 665,600 (approx. EUR 15,400) in 2026. Payment of this fine does not exempt the Ukrainian resident entity from the obligation to submit the MF. Failure to submit the LF, or submitting the LF with a breach of requirements, may also result in a tax audit. Late submission of TP documentation incurs a penalty of 2 times the MLW per calendar day, i.e., UAH 6,656 (approx. EUR 154) per day, up to a maximum of UAH 665,600 (approx. EUR 15,400). The amount of fines is subject to change, as it is based on the MLW for a working age person, which is updated each year or more often.

05 | Language in which LF needs to be prepared/filed

LF may be prepared in any language, but must be submitted in Ukrainian. Foreign-language documents require a Ukrainian translation, but notarisation is not needed.

06 | Safe harbour

n/a.

07 | Additional requirements (e.g. materiality, etc.), if applicable

TP documentation must include:

a. Counterparty and related parties – identification details, ownership structure, ultimate beneficial owners, jurisdictions, and criteria for relatedness.
b. Group overview – organizational structure, business description, TP policy, and entities receiving local management reports.
c. Taxpayer details – management structure, organizational chart, employee count by unit.
d. Business activities – description, strategy, market conditions, competitors.
e. Restructuring/IP transfers – details of business restructurings or IP transfers in the current or previous year.
f. Controlled transaction details – supply/value chain, economic rationale, business purpose, and description of goods/services.
g. Description of goods/services – physical characteristics, quality and market reputation, country of origin and manufacturer, trademarks, and other relevant qualitative attributes.
h. Financial information – actual payments, amounts, currencies, and payment documents.
i. Pricing factors – factors influencing pricing and business strategies.
j. Functional analysis – functions, assets, and risks of parties to the transaction.
k. Economic and comparability analysis – method selection, comparables, data sources, profitability range calculations, adjustments, and supporting financial statements.
l. Adjustments – any self-initiated or proportional tax adjustments made.
m. Group-related documents – key intercompany agreements, APAs, and tax rulings from foreign authorities.
n. Audit Report – if mandatory for the taxpayer.
o. Contracts – copies of contracts and all amendments related to the controlled transactions.

STATUTE OF LIMITATIONS

The standard statute of limitations generally follows the 1095-day (i.e., 3-year) period, starting from (i) the deadline for filing the Tax Return for the reporting period – if the Tax Return was filed in time, or (ii) the day when the Tax Return was actually filed – if the Tax Return was filed after the deadline, or (iii) the day when the corrected Tax Return was filed – if the Tax Return was filed and then corrected, or (iv) the deadline for paying taxes accrued. However, for TP matters an extended statute of limitations follows the 2555-day (i.e., 7-year) period.

The statute of limitations may be ignored if tax declaration for the period in which the tax liability arose was not filed, or if a Ukrainian resident’s official has been convicted for tax evasion related to that liability, or a criminal case against them was closed on non-rehabilitative grounds with a final and binding decision.

The statute of limitations may be extended for any period during which:

a. The tax authority is legally or judicially prohibited from conducting an audit of the taxpayer;

b. The tax authority suspends, extends, or postpones the audit period in certain cases;

c. The tax authority cannot conduct the audit or determine the tax liability due to: issuance of a report on the impossibility to conduct the audit (unless deemed unlawful);

• taxpayer’s refusal to admit tax officials for audit while the tax authority complies with legal requirements;
• taxpayer’s judicial challenge against the audit decision (except if the decision is overturned or invalidated);

d. The taxpayer is contesting the tax authority’s decision on tax assessment in administrative or judicial proceedings.

Extra Compliance Requirements

Ukrainian residents are also required to submit the following reports using the prescribed domestic forms:

a. File a Report on Controlled Transactions (all controlled transactions) — before 01 October of the year following the reporting year;

b. File an MNE Group Notification if the Ukrainian resident is part of a multinational group — before 01 October of the year following the reporting year;

c. File a CbCR if the group’s consolidated revenue exceeds EUR 750 million and certain other conditions are met — for the FY set by the group’s parent company, which may differ from the calendar year, and must be submitted within 12 months after the end of that FY (or within 12 months after the calendar year if the parent company’s FY is unknown).

FY is unknown).

Penalties

a. Failure to file:

ii. Controlled Transactions Report: fine of 300 times the MLW for a working-age person, i.e, UAH 998,400 (or approx. EUR 23,000) in 2026.

iii. MNE Group Notification: fine of 100 times the MLW, i.e, UAH 332,800 (or approx. EUR 7,680) in 2026.

iv. CbCR: fine of 1,000 times the MLW, i.e, UAH 3,328,000 (or approx. EUR 76,800) in 2026.

v. Payment does not relieve the filing obligation.

b. Late filing:

iii. Controlled Transactions Report: fine of 1 times the MLW (UAH 3,328) per day, capped at 300 MLWs, i.e, UAH 998,400 (or approx. EUR 23,000) in 2026.

iv. Late declaration of transactions in an amended report: fine of 1 times the MLW (UAH 3,328) per day, capped at the lower of 300 MLWs (UAH 998,400 (or approx. EUR 23,000) in 2026) or 0.5% of the undeclared controlled transaction amount.

v. MNE Group Notification: fine of 1 times the MLW (UAH 3,328) per day, capped at 50 MLWs, i.e., UAH 166,400 (or approx. EUR 3,800) in 2026.

vi. CbCR: fine of 10 times the MLW (UAH 33,280) per day, capped at 1,000 MLWs, i.e., UAH 3,328,000 (or approx. EUR 76,800) in 2026.

c. Errors:

iv. Undeclared controlled transactions in the Report: 1% of the undeclared amount, capped at 300 MLWs, i.e, UAH 998,400 (or approx. EUR 23,000) in 2026.

v. Missing required information in a CbCR: fine of 1% of the revenue of the group member omitted in a CbCR, capped at 1,000 MLWs, i.e., UAH 3,328,000 (or approx. EUR 76,800) in 2026.

vi. Inaccurate information in a CbCR: fine of 200 time the MLW, i.e., UAH 665,600 (or approx. EUR 15,400) in 2026.

vii. Inaccurate information in an MNE Group Notification: fine of 50 times the MLW, i.e., UAH 166,400 (or approx. EUR 3,800) in 2026.

viii. No penalty for technical errors if corrected.