Transfer pricing: the STS reminds businesses of the option to self-adjust prices

On 9 September, the State Tax Service of Ukraine (STS) once again drew businesses’ attention to transfer pricing.

This concerns companies that carry out controlled transactions and need to determine whether the terms of those transactions comply with the arm’s-length principle.

Put simply, the question is whether the price of a transaction with a non-resident corresponds to the price that could have existed between independent companies under comparable conditions.

There is an important mechanism available in this area.

If a business independently determines that the terms of a controlled transaction do not comply with the arm’s-length principle, the Tax Code allows it to independently adjust the transaction price and the amount of tax payable to the budget.

Such an adjustment must not result in a reduction of tax.

The practical logic is straightforward: it is better to identify and correct a transfer-pricing issue independently than wait for the STS to find it during a tax audit.

This is particularly relevant now.

From 1 September 2026, the report on controlled transactions must be filed using an updated form.

Companies that carried out controlled transactions in 2025 are currently completing their transaction analysis and preparing the relevant reporting.

What should businesses review?

– transactions with related non-residents;
– exports and imports within an international group;
– prices for goods and raw materials;
– intra-group services;
– financing and interest;
– royalties;
– profitability indicators;
– whether transactions fall within the market range.

If the price or profitability falls outside the acceptable range, an adjustment to tax indicators may be required.

This is no longer merely a theoretical risk.

According to the STS, in the first five months of 2026 alone, more than 100 companies voluntarily adjusted controlled transactions and tax liabilities by over UAH 3 billion.

In the preceding year, the total amount of such adjustments reached UAH 6.3 billion.

In other words, transfer pricing is steadily becoming a practical area of tax control for international businesses.

Companies working with related non-residents or operating as part of international groups should be especially diligent.

Before filing their report, businesses should answer three questions:

is the transaction controlled → does the price comply with the arm’s-length principle → should an adjustment be made before the STS raises the issue?

In transfer pricing, an error in the price of a single large transaction can mean tax consequences measured not in thousands, but in millions of hryvnias.

It is better to seek legal advice now than to require legal defence services later.

Would you like to review controlled transactions, transfer prices, or the tax risks associated with transactions involving non-residents?

📞 Call: 096 574 81 02
📧 Email: info@uk-winner.com

Author: Ihor Yasko, Managing Partner at WINNER Law Firm, PhD in Law