On March 7, 2018, the Resolution of the Cabinet of Ministers of Ukraine dated January 31, 2018, No. 108 “On Amending the Annex to the Resolution of the Cabinet of Ministers of Ukraine as of December 27, 2017, No. 1045” came into force, which excluded the positions of ‘Georgia’, ‘The Republic of Estonia’, ‘The Republic of Latvia’, ‘The Republic of Malta’ and ‘Hungary’ from the list of states (territories) meeting the criteria established by cl. 22.214.171.124 Art. 39 of the Tax Code of Ukraine
We draw attention to the fact that the National Committee of Ukraine defines controlled transactions as economic transactions, in particular, carried out with non-residents registered in the states (on the territories), which are included in the list of states (territories) approved by the CMU or resident in these countries.
However, this does not mean that such transactions will not fall under the notion of ‘controlled transactions’, – e.g. in case of carrying out business transactions with non-residents registered in Georgia, the Republic of Estonia, the Republic of Latvia, the Republic of Malta or Hungary in 2018, in the absence of other criteria defined in subparagraphs “a”, “b”, “d”, “e” of subcl. 126.96.36.199. 39.2.1 cl. 39.2 of Art. 39 of the Tax Code of Ukraine.
They will be recognized as controlled if the following conditions are met simultaneously:
It can be concluded that economic transactions with the above-mentioned states, in case of failure to fall under any of the criteria provided by the Tax Code of Ukraine, from 01.01.2018. to 06.03.2018, may not be recognized as controlled, thereby simplifying the conduct of business with foreign counterparties.