Andrey Tsymbal, Managing Partner, and Konstantin Karpushin, Director, Tax and Legal, participated in the Round Table with Natalie Jaresko, Minister of Finance of Ukraine, organized by the U.S.-Ukraine Business Council.
Natalie Jaresko spoke about actions taken by the Government of Ukraine to stabilise the macroeconomic situation in the country, lay the foundations for economic growth, and provide favourable conditions for attracting investment into the economy.
Andrey Tsymbal, Managing Partner, KPMG in Ukraine, and Konstantin Karpushin, Director, Tax & Legal, represented KPMG at the round table. Our professionals covered the important issue of implementing Advance Pricing Agreements (APAs) concluded between major tax paying companies and the State Fiscal Service of Ukraine in order to predetermine the transfer pricing tools to be used to set prices in so-called controlled transactions.
Konstantin proposed to initiate APA program in Ukraine and to inspire concluding APAs with 100 largest taxpayers in order to secure Ukrainian tax base, to reduce compliance burden for the business, and to decrease a risk of tax uncertainty.
Participation in the round table has become an important step in strengthening KPMG relations with the public sector in Ukraine: the ministry has shown considerable interest in initiatives proposed by KPMG professionals, and plans to have a number of meetings to discuss further cooperation and proposed measures. Moreover, such round tables provide an opportunity for the authorities to hold an effective dialogue with the business community, and knowing that KPMG has always been an active participant of such events helps us maintain the image of being a reliable partner for potential cooperation with both the Ministry of Finance and other state authorities in Ukraine.
An Advance Pricing Agreement (APA) is an arrangement between a large taxpayer and the State Fiscal Service of Ukraine (the "SFS") that sets out in advance the specific transfer pricing method for determining prices in "controlled transactions".