Ukraine has excluded 41 states and added 9 to the list of countries whose transactions with counterparties are subject to control under the transfer pricing (TP) law, according to Resolution No. 1505 of December 27, published by the Cabinet of Ministers on its website on Monday.
“Taking into account the provisions of the law No. 3813-IX dated 18.06.2024 “On Amendments to the Tax Code of Ukraine regarding the peculiarities of tax administration during states for taxpayers with a high level of voluntary compliance with tax legislation”, the updated list of states (territories) will contain 46 states (territories) instead of 78,” the Ministry of Finance noted in the commentary to the resolution.
The Ministry of Finance clarified that the list includes states from the list of offshore zones approved by the government and the FATF blacklist. FATF, as well as states (territories) that do not ensure timely and complete exchange of tax and financial information.
We are talking about 9 states and territories: American Samoa, Guam, DPRK, Myanmar, Namibia, Netherlands Antilles, Alderney, Trinidad and Tobago, Fiji, and Guam.
At the same time, the Ministry of Finance added, the states with which Ukraine has concluded international treaties for the avoidance of double taxation are excluded.
According to the adopted resolution, 41 countries or territories were removed from the list, including: Bahrain, Bosnia and Herzegovina, Brunei, Burundi, Cape Verde, Cape Verde, China Hong Kong Special Administrative Region (EU), Djibouti, Dominican Republic, Ireland, the Autonomous Community of the Canary Islands of the Kingdom of Spain, Cuba, Guadeloupe, Guatemala, Kyrgyzstan, Cyprus, the Autonomous Province of Kosovo and Metohija of the Republic of Serbia, Cuba, Curacao, Laos, Lebanon, Mauritius, and Qatar.
The list also includes the Macao Special Administrative Region of China, the Former Yugoslav Republic of Macedonia, the Federal Territory of Labuan Malaysia, Morocco, Martinique, and the Federated States of Micronesia, Moldova, the United Arab Emirates, Oman, Paraguay, the Commonwealth of the Northern Mariana Islands, the Autonomous Region of Madeira of the Portuguese Republic, San Marino, Sao Tome and Principe, Sudan, Timor-Leste, Turkmenistan, Uzbekistan and Montenegro.
According to the resolution, it will come into force on January 1, 2025.
As reported, according to the Law “On Amendments to the Tax Code of Ukraine on Transfer Pricing”, which entered into force on September 1, 2013, the TP rules apply to controlled transactions with residents of low-tax jurisdictions (income tax rate in which is 5 percentage points or more lower than the Ukrainian rate).
On Monday, Danylo Hetmantsev, the head of the relevant parliamentary committee, said that about 35,000 taxpayers have already submitted their first reports on controlled foreign companies (CFCs), and the budget has received an additional UAH 1.88 billion.
“By the way, tomorrow, December 31, is the last day of a difficult but productive year of 2024. This is the last day to submit full CFC reports for 2023,” he reminded.
Hetmantsev added that on December 26, amendments to the Code regarding fines for failure to submit information and CFC reports came into force, but everyone will have the opportunity to report within six months after the lifting of martial law, without fines.
State-owned Ukrgasbank (UGB, Kyiv) has announced the launch of contactless payment acceptance technology for small businesses through the UGB Tap&Pay application for Android smartphones in cooperation with Visa, the financial institution’s press service said on Friday.
“Mobile acquiring is based on Visa Tap to Phone contactless payment technology, which allows you to use a smartphone on the Android operating system version 8.0 and higher as a POS terminal. Now entrepreneurs no longer need a physical terminal – download UGB Tap&Pay and accept payments conveniently and instantly,” the state bank’s press release explains.
The press service of the financial institution clarified that the acquiring fee is 1.3%. “Ukrgas plans to launch this service on smartphones with the iOS operating system next year.
According to the National Bank of Ukraine, as of November 1 this year, Ukrgasbank ranked 5th (UAH 136.18 billion) among 62 banks operating in the country in terms of total assets. The financial institution’s net profit for the first ten months of this year amounted to UAH 4.84 billion, while in the same period last year it was UAH 3.36 billion.
Ukrainian hospitals are preparing to launch MRI machines purchased from the state budget and delivered in 2024.
According to the state-owned enterprise Medical Procurement of Ukraine, in 2024, medical institutions received 15 MRI units.
The MRI machines have already started working in a number of medical institutions, including the Pavlohrad Intensive Care Hospital (Dnipro region) and Sumy Regional Clinical Hospital.
According to the Ministry of Health, it takes an average of three months from the moment of delivery to the moment of the first direct use in patient diagnosis.
As reported, in 2023, the Ministry of Health purchased 28 MRI machines worth UAH 2.27 billion, including 22 machines with a capacity of 1.5 Tesla and six machines with a capacity of 3 Tesla.
Pharmacy sales in Ukraine in January-November 2024 increased by 10.77% in monetary terms compared to the same period in 2023 to UAH 174.22 billion, while in physical terms they decreased by 4.99% to almost 1.059 billion packages.
According to Business Credit, according to its research, the weighted average price of pharmacy basket goods during this period was UAH 165.07, which is 16.6% more than in the same period in 2023.
At the same time, pharmacy sales of medicines in January-November 2024 amounted to UAH 136.889 billion, which is 10.91% more than in the same period in 2023, but in physical terms, pharmacy sales of medicines decreased by 5.53% to 740.71 million packs.
The weighted average retail price of medicines in January-November 2024 amounted to UAH 184.81 per unit, which is 17.41% more than a year earlier.
Pharmacy sales of dietary supplements in 11 months increased by 11.28% in monetary terms to UAH 17.99 billion, while in physical terms they decreased by almost 3.04% to 89.873 million packs. The weighted average price in this segment increased by 14.76% over 11 months compared to the same period in 2023, to UAH 200.17 per unit.
As reported, in January-June 2024, pharmacy sales in Ukraine increased by 12.67% in monetary terms compared to the same period in 2023 to UAH 94.784 billion, while in physical terms they decreased by 4.7% to 583.21 million packs. The weighted average price of pharmacy basket products for this period amounted to UAH 162.52, which is 18.25% more than in the same period of 2023.
At the same time, pharmacy sales of medicinal products in January-June 2024 amounted to UAH 74.258 billion, which is 12.68% more than in the same period of 2023, but in physical terms decreased by 5.13% to 408.796 million packs. The weighted average retail price of medicines in January-June 2024 amounted to UAH 181.65 per unit, which is 18.67% more than a year earlier.
In 2024, TAS Agro agricultural holding achieved financial results of more than $22 million in Net Profit, the company’s CEO Oleg Zapletnyuk said on his Facebook page.
According to him, in 2024, the agricultural holding radically changed its production technology by diversifying its crops by moisture zones and introducing the Strip-Till system with a complete rejection of plowing. In addition, the agricultural holding standardized key processes.
The CEO of TAS Agro recalled that in 2024, $15 million was invested in the renewal of the technical fleet, which made it possible to completely abandon the use of hired equipment (except for combines). This decision made it possible to optimize the number of employees from 1878 to 1540, while the average income increased by 44%.
The agroholding has formed development strategies for the company and its departments for 3 years, implemented a production management system, launched an R&D service, created a service department, started systematically developing livestock and elevator business, and stabilized the land bank.
Mr. Zapletnyuk thanked the team members and partners of the agricultural holding and promised that 2025 would continue to be a year of active changes.
TAS Agro was established in 2014. Its land bank includes 88 thousand hectares in Chernihiv, Sumy, Kyiv, Vinnytsia, Kirovohrad and Mykolaiv regions. The holding specializes in crop production, with elevators with a capacity of about 250 thousand tons. The livestock business is represented by a cattle herd of 5.5 thousand heads, of which 2.5 thousand heads are dairy cattle.
According to the Opendatabot resource, the company’s revenue in 2023 amounted to UAH 2.588 billion, net profit – UAH 155.842 million, debt – UAH 1.2 billion, assets were estimated at UAH 1.8653 billion, and the number of employees – 129. The authorized capital is UAH 8 thousand.
The agricultural holding is part of the TAS group, founded in 1998. Its business interests include the financial sector (banking and insurance segments) and pharmacy, as well as industry, real estate, and venture capital projects.
The founder of TAS and the beneficiary of the TAS Agro agricultural holding is Sergiy Tigipko.
