A year ago, we paid attention to the risks and possibilities of recognition by tax authorities of transactions with residents of Germany with the legal form of GmbH & Co.KG controlled.

In particular, this issue was investigated in the article.

At that time, the tax authorities held the position that since this legal forms are not included in the List of legal forms for transfer pricing, transactions with such non-residents should not be considered controlled unless there are other grounds for recognizing transactions as controlled (for example, related parties).

However, on January 1st, 2020, Resolution of the Cabinet of Ministers No. 1100 dated December 24, 2019 came into force, amending the resolution of the Cabinet of Ministers dated July 4, 2017 No. 480 and expanded the list of legal forms of legal entities whose business transactions are subject to transfer pricing rules.

In particular, the following legal forms are included:

Republic of Austria:

  • GmbH & Co.KG;

Federal Republic of Germany:

  • GmbH & Co.KG;
  • AG & Co.KG;
  • UG & Co.KG;
  • GmbH & Co. KGaA;
  • AG & Co. KGaA;
  • GmbH & Co. OHG;

Republic of Poland:

  • zo.o.S.K.;
  • zo.o.S.J.

Useful links:

  • Article written by Alina Bakulina  dated 12/14/2018 “Whether transactions with GmbH & Co. should be controlled?”

Link: https://news.finance.ua/ua/news/-/440229/alina-bakulina-transfertne-tsinoutvorennya-chy-povynni-buty-kontrolovanymy-operatsiyi-z-gmbh-co-kg

Resolution of the Cabinet of Ministers No. 1100 dated December 24, 2019

Link: https://www.kmu.gov.ua/npas/pro-vnesein-u-dodatok-do-postanovi-a1100