Ukraine drops Singapore from list of risky countries as part of transfer pricing supervision

MOSCOW. June 5 (Interfax) - Ukraine has dropped Singapore from the list of countries whose transactions with counterparties are subject to supervision as part of the transfer pricing law.

The Ukrainian government published the corresponding resolution dated June 4 on its website on Wednesday, Ukrainian media reported.

Under the law introducing transfer pricing amendments to the Ukrainian Tax Code, which took effect on September 1, 2013, the transfer pricing rules apply to supervised transactions with residents of low-tax jurisdictions, whose income tax rate is 5 p.p. or more lower than the Ukrainian rate.

The Ukrainian government included Singapore along with Estonia, Iran, Cuba, Laos, Latvia, Lebanon, Malta, Morocco, Monaco, the United Arab Emirates, Georgia and Hungary in late 2017 on the list of countries whose transactions with counterparties are subject to monitoring under the transfer pricing law. The total number of countries on the list rose from 65 to 85 at that time.

However, Estonia, Latvia, Hungary, Georgia and Malta were removed from the list a month later, followed by Bulgaria three months later. After Singapore was removed from the list, there are 78 countries on the list.

Ukrainian President Vladimir Zelensky attend the Shangri-La Dialogue conference in Singapore on June 1-2. He also met with the country's leadership.