Letter of the State Fiscal Service of Ukraine №1021/6/99-99-15-02-02-15 from 19.01.2017

1) A special procedure for establishing compliance with the conditions of the “arm’s length” principle is specified for controlled transactions with stock commodities. For the purpose of applying a special rule, Tax Code of Ukraine defines an exclusive list of financial and business conditions that should be taken into account in order to ensure comparability of stock quotes with the conditions of a controlled transaction. The stock quotes for the ten-day period preceding a controlled transaction must be used to calculate the range.
2) The range of prices in a controlled transaction carried out on the basis of forward or futures contract is determined on the basis of forward or futures exchange quotations of the relevant product for the ten days preceding the date of the conclusion of the relevant forward or futures contract, provided that the taxpayer will notify the SFS of the conclusion of such a contract within 10 working days from the day of the conclusion of the relevant forward or futures contract.
3) In case of use of other transfer pricing methods for controlled transactions with stock commodities, except CUP method, the taxpayer must submit written information in an arbitrary form, which specifies the data of all associated parties, to the controlling authority in which taxpayer is registered. The set must contain data about all associated parties who participated in the purchase and sale chain of such goods (up to the first independent counterparty), and data on the level of profitability of associated parties in particular.

More…