Legal regulation of procedure for advance pricing agreements in Ukraine

Abstract

Advance pricing agreements (APAs) are globally widespread as an instrument of providing the balance of interests between bona fide taxpayers and fiscal authorities. Ukraine has attempted to use such instrument since the introduction of the transfer pricing control. Nevertheless, no APA has yet been concluded in Ukraine. The authors use methods of comparative legal analysis, historical analysis and legal modelling to describe the evolution of the normative regulation of the procedure for APAs and reveal the factors which have impacted on the attractiveness of APAs for taxpayers. There are also a few propositions on improvement of the procedure for APAs in Ukraine, which are formulated on the basis of best practices of developed and developing countries. Proposed changes concern the opportunity to revise APAs, the introduction of special features in the procedure for APAs in case of their bi- or multilateral character and the alignment of the access to the procedure for APAs in Ukraine.

Keywords

• transfer pricing
• advance pricing agreements
• taxpayers’ rights
• taxation
• legal regulation
• tax law