25, Prime Minister had telephone conversation with Prime Minister of Estonia Jüri Ratas.
of Government, having commended the high level of bilateral cooperation, had in-depth
conversation regarding the practical measures to deepen cooperation in the
trade, economic and financial spheres.
touching upon issues pertaining to financial discipline and improving the
existing order of financial and economic calculations between business entities
of two countries, the Head of Ukrainian Government briefed his counterpart
about the content of the resolution of the Cabinet of Ministers of Ukraine at
the end of December 2017 No. 1045, which approved the list of countries (territories)
whose residents make business transactions subject to transfer pricing control.
Groysman stressed the decision is aimed to prevent
tax evasion and tax-base erosion, in particular, as foreseen by such profile
international organizations as the OECD.
Minister noted that the action of the said list applies only to residents of
Ukraine who submit a report on controlled transactions to the tax authorities
of Ukraine, hence the State Fiscal Service, in accordance with the submitted reports,
will determine the risky operations subject to additional control by the system
of detection of risks, as it is operates all over the world.
List is not a list of offshore zones.
included in the List as a country in which the retained earnings rate makes up
0%, which can be used by residents of Ukraine for tax base erosion and profit
tax avoidance in Ukraine.
Estonian side was also informed that the NBU had not made any decisions to
include Estonia in the list of offshore territories. In order to avoid possible
misunderstanding in conducting account management by business entities, on
January 24, 2018, the NBU sent a directive letter to Ukrainian banking
institutions explaining the lack of legal grounds for applying an in-depth
analysis of Estonian companies.
results of the conversation, the Prime Ministers agreed to commission finance
ministries of their countries, together with the tax authorities, to engage in
cooperation and, if necessary, to hold consultations, in which to resolve
of Government believe that such an approach would promote the intensification
and deepening of interaction in the trade and economic sphere, and will
positively affect a mechanism of financial and banking operations between the