Collecting taxes in the Crimean free trade zone 

The Main Directorate of the National Fiscal Service of Ukraine in Kyiv city accentuates that because of coming into force the Law of Ukraine dd. September 12, 2014, No. 1636 – VII on the Crimean Free Economic Zone and specificity of running business in the temporarily occupied territory of Ukraine (hereinafter – Law No. 1636), when fulfilling the norms of article 39 (transfer pricing) of the Tax Code of Ukraine, the provisions of the Law should be adhered to.

In other words, pursuant to par. 5.2 and 5.3 of article 5 of Law No. 1636, which took effect on 27.09.2014, the relationships between persons which tax address registered in the territory of the Crimean FEZ, and persons with tax addresses registered in other territory of Ukraine, are regarded to be controlled operations  pursuant to article 39 of the Tax Code of Ukraine, while legal entities (separated units) and natural persons, with tax address (location/place of residence) registered in the territory of the Crimean FEZ, are put on equal footing with non-residents, for purpose of taxation.

Simultaneously, we’d like to note that par. 12.3, article12, the Law of Ukraine No.1636 sets out that persons registered with oversight authorities or located (place of residence) in the territory of AR Crimea or Sevastopol city at the beginning of the temporary occupation, are exempt from the obligation to fulfil requirements of the Law of Ukraine On Registrars of Settlement Transactions  in Trade, Public Catering and Services while being involved in   entrepreneurship in the temporary occupied territory of Ukraine.