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Changes in tax legislation in 2017 for investors in the agricultural sector of Ukraine

December 8, 2016 the Verkhovna Rada of Ukraine adopted the draft law "On Amendments to the Tax Code of Ukraine (concerning the Ukrainian investment climate improvement)» №5368 from 07.11.2016. For the law voted 241 deputats, in addition, members of parliament supported a shortened procedure for the preparation of the draft law for the second reading.It is on the new developments mentioned in this legislative document in the field of transfer pricing dwell in more detail:- Changes in value of operations controlled by the recognition criterion: the taxpayer's income grew from 50 million UAH  up to 150 million UAH. for the tax (reporting) year); the amount of the taxpayer's business transactions with one counterparty has increased from 5 million UAH up to 10 million UAH  for the tax (reporting) year.- Change the criteria for the list of jurisdictions with which the operation can be considered controlled.- The possibility of using to calculate the profitability of the ranges of the financial information comparable entities.- Differentiation of the fine for cases of late submission of the report of the controlled transactions.- Implementation of the accrual of tax liabilities during the self-adjustment is to the median, and minimum or maximum value.We want to pay special attention when presenting information on the types and amounts of liability for failure to comply with the relevant legislation, and in particular:- Failure (late submission) report on controlled operations, entails a fine: 300 MW size established by law on January 1 of the tax (reporting) year, and this (365 400 hryvnia in 2015, and 413 400 hryvnia in 2016).- For the undeclared transactions in the report: 1 percent of the amount of controlled transactions not declared in the report, but not more than 300 MW size.- Operations which are not provided records: 3 percent of the amount of controlled transactions, for which no documentation has been submitted, but not more than 200 MW of all controllable transactions of the reporting year.It is important to clarify that the innovations aimed at improving the investment climate in Ukraine concern not only pricing but also the administration of taxes and fees; corporate income tax, personal income tax, VAT, excise tax, property tax, as well as the conversion system of the tax police.