Keywords
Base Erosion and Profit Shifting
European integration
tax legislation
Organisation for Economic Co-operation and Development
European Union
controlled transactions
tax transparency
How to Cite
Abstract
The article examines transfer pricing as a key instrument of international tax regulation in the context of Ukraine’s integration into the European Union and the development of national tax legislation. The relevance of the topic is substantiated by the growing role of multinational enterprises, the increasing share of intra-group transactions in global trade, and the need to counter base erosion and profit shifting. The study analyzes the current state of the legal and regulatory framework for transfer pricing in Ukraine, including the criteria for identifying controlled transactions, methods for determining compliance with the arm’s length principle, and documentation requirements. Particular attention is paid to the implementation of the minimum standards of the Base Erosion and Profit Shifting Action Plan, especially Action 13, which introduces a three-tiered documentation model (Local File, Master File, and Country-by-Country Reporting) and mechanisms for the automatic exchange of tax information. The article assesses the compliance of Ukrainian tax legislation with the standards of the Organisation for Economic Co-operation and Development and European Union requirements, as defined in the Anti-Tax Avoidance Directive and Directives on Administrative Cooperation, as well as in the European Union Transfer Pricing Guidelines and the recommendations of the Joint Transfer Pricing Forum. A comparative analysis of regulatory approaches in Ukraine and the European Union demonstrates a high level of harmonization of key elements of transfer pricing regulation, while also identifying areas requiring further institutional development. It is argued that the further implementation of European initiatives in the field of transfer pricing, including advance pricing agreements, improved regulation of transactions involving intellectual property, and the development of a stable judicial practice, will enhance the effectiveness of tax control, reduce the risks of aggressive tax planning, and contribute to the deepening of Ukraine’s European integration processes.
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