Ukraine's Cabinet of Ministers will remove Austria from the list of countries transactions with whose counterparties are subject to control under the law on transfer pricing on August 1, 2015.

This is stipulated in Cabinet resolution No. 677 dated July 1, 2015, which is available on the government website on Monday.

"[The decision was taken] based on information received from the diplomatic mission of the Republic of Austria in Ukraine, a verbal note dated June 18, 2015, with comments on the non-compliance of the legislation of the Republic of Austria with corporate tax rates in Austria, the disclosure of the ownership structure of legal entities <...> and for preparedness to review the existing Convention between the Governments of Ukraine and Austria on avoidance of double taxation and prevention of fiscal evasion with respect to income taxes and property where it concerns extended exchange of tax information," the cabinet said.

As reported, the cabinet included Austria in the list of countries with which translations are subject to control under the law on transfer pricing by issuing resolution No. 449 dated May 14, 2015. Turkmenistan, Hong Kong, and Niue are also on the list, however Albania was not included in the list, bringing the total number of the countries on the list to 76.

The law on amendments to the Tax Code of Ukraine on transfer pricing became effective in Ukraine on September 1, 2013. Under the law, the rules of transfer pricing are applicable to transactions with residents from low-tax jurisdictions (where the income tax rate is lower than in Ukraine by 5 percentage points or more).