Effective 1 January 2025, Ukraine has updated its list of low-tax jurisdictions, reducing the number from 78 to 46. The revised list reflects the following key changes:
- Jurisdictions that have signed tax treaties with Ukraine have been removed;
- Jurisdictions classified as offshore zones by Ukraine or the FATF have been included; and
- Jurisdictions that fail to ensure timely and complete exchange of financial information have been added.
Ukrainian taxpayers engaging in transactions with residents of these jurisdictions are subject to specific regulatory requirements. Qualifying taxpayers must:
- Submit a report on such transactions;
- Maintain transfer pricing documentation;
- Provide TP documentation to the tax authorities upon request.
The foregoing measures are aiming to enhance transparency and prevent tax avoidance through low-tax jurisdictions.
For further information please contact Dmytro Ivanusa, Partner at divanusa@mazurivanusa.com