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Amendments into the Tax Code of Ukraine concerning transfer pricing

The list of countries with their corporate tax rates

Due to the amendment into the Tax Code of Ukraine concerning transfer pricing, the difference between corporate tax rates in Ukraine and in third countries has become a matter of importance. Transactions, within which one of the parties is non-resident, in case the corporate tax rate in the home-country of this party is below 95% of the correspondent corporate tax rate in Ukraine,such transactions comes to the list of controlled.

The list of countries (and autonomous zones with independent taxation systems), bringing their corporate tax rates (ranges, where possible), and indication those of them which are below the imposed limit.

2013 min. rate, %

2013 max. rate, %

Control requirement

Andorra

10

Angola

35

Antigua and Barbuda

25

Argentina

35

Armenia

20

Aruba

28

Australia

30

Austria

25

Azerbaijan

20

Bahamas

0

Benin

35

Bermuda

0

Bosnia and Herzegovina

10

Botswana

22

30

Brazil

25

34

Brunei

23,5

Bulgaria

10

Burkina Faso

30

Burma

25

Cyprus

12,5

Czech Republic

5

19

Denmark

25

Slovenia

17

Spain

25

30

Turkey

20

Ukraine

19

United Arab Emirates

55

United Kingdom

23

United States

20

42

marked jurisdictions: corporate tax rate of which is below 15,2%, which is less than 95% of 16% corporate tax rate, which will come into force in Ukraine from January the 1st, 2014.

marked jurisdictions: corporate tax rate of which is below 18,05%, which is less than 95% of 19% corporate tax rate. Transactions with residents from countries with this corporate tax rates will be controlled until January the 1st, 2014.

jurisdictions marked with two indicators: in case the minimum rate within the range results in different indicator to the maximum rate of the range, they are indicated separately. Left indicator is regarding minimum and right indicator is regarding maximum corporate tax rate of the range.