State Tax Authority has made an algorithm for determining the “normal price” for foreign trade operations

State Tax Authority (STA) has developed guidelines regarding the algorithm for determining the “normal price” of products (goods) in foreign trade activity (on the basis of paragraph 1.20 of the Law “On income tax” and paragraph 8 of subsection 10 of section XX of the Tax Code.

To determine the “normal selling price” of products (goods) on the world commodity markets the STA will use, in particular:

1) newsletter “Price survey of Ukrainian and world commodity markets,” Commodity Monitor “Commodities”, metallurgical monitors “Steel products”, “Raw Materials”, catalogue “Importers and Exporters of Ukraine”;

2) Web sites:

  • – metal prices;
  • – world prices for metals, ferroalloys and carbon;
  • – analyst prices of chemical products and petroleum products in the world markets of Asia, Africa and Europe;
  • – metal prices on world commodity exchanges;
  • – prices for metals and metal products on the Ukrainian market;
  • – site of the Ministry of Economic Development and Trade of Ukraine (cash monitoring in metal prices on world markets);
  • – crop prices, on contracts on commodity exchanges;
  • – the price of wheat, corn, sunflower, soy, rape;
  • – prices of agricultural products (corn, barley, wheat, etc.);
  • – prices and analyst purchase prices for grain and so on;

3) information from the tax authorities of other countries;

4) the results of an independent evaluation of the property and property rights, carried out in accordance with the Law “On the assessment of property, property rights and professional valuation”;

5) explanations provided by the taxpayer on request of the STA with the aim to justify the level of the “normal prices”.

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