IN THIS ISSUE:
Foreign Trade Restrictions in Ukraine
Ukrainian authorities have extensive powers to impose so-called “special sanctions” on importers/exporters and their foreign counterparts for “violations of foreign trade and related laws.” These sanctions interrupt the normal course of business and may lead to considerable financial losses. REEG reviews applicable rules and practices with respect to these sanctions. Page 2
Transfer Pricing in Kazakhstan
On June 14, 2010, the President of Kazakhstan signed a law on transfer pricing and taxation, which aims to further develop transfer pricing control mechanisms. The most significant amendments introduced by the new law are the new definitions: “quotation period,” ”corresponding market of identical goods (work, services),” ”transactions executed on the territory of the Republic of Kazakhstan directly related to international business transactions,” and “profitability norms.” Page 3
Changes to Income Tax Rates for Non-Residents in Russia
REEG reviews a new law that provides for new, reduced rates of personal income tax for several categories of Russian non-residents. Page 6
Import-Export in Ukraine: Law and Practice
As any importer knows by now, in Ukraine import-export is an uneven combination of law and practice. From a legal viewpoint, it’s a simple concept: just sign a profitable contract with your Ukrainian partner, arrange to ship your goods to Ukraine, and get paid for it. But there are risks all along, which mercilessly eat away at your profits, so a wise businessman often chooses to “go slow.” Page 15
