Controlled Operations Report

The Controlled Operations Report is submitted by corporate income taxpayers if they conducted operations with non-residents that meet the criteria for being classified as controlled during the reporting period.

Required settings

Before creating the report, ensure that all necessary settings have been completed:

1. On the General Ledger Setup page, in the Numbering tab, a number series for the report is set in the Control Operation Nos field.
2. All required codes are created on the Codes Controlled Operations page.
3. On the Customer or Vendor cards, the appropriate code is set in the Country/Region Code field.

Note For the selected country code, the ISO Numeric Code field must be filled in on the Countries/Regions page.

Also, on the Customer or Vendor cards, in the Related Parties tab, the Entries Code field must be filled in.

4. On the Customer or Vendor contract cards, the Related Parties tab must be filled in.

Field	Description
Shipment Terms (Incoterms)	Specifies the delivery condition code according to Incoterms.
Place of delivery (Incoterms)	Specifies the place of delivery according to Incoterms.
Entry Code	Indicates the code of the name of the operation in accordance with the codes defined by the law.
Side Code	Specifies the transaction party code according to the defined transaction party codes.
Conformance Method Code	Specifies the code of the method of determining the compliance of the conditions of the controlled operation with the "arm's length" principle.
Profitability Indicator	Specifies the profitability index code used to establish compliance with the "arm's length" condition of a controlled operation.
Profitability Indicator Value	Specifies the numerical value of the indicator of the profitability of the operation in percentage.
Source Type Code	Specifies the code of the type of information source that was used under the established conditions of compliance of the controlled operation under the "arm's length" principle.
Source Type Name	Specifies the name of the information source that was used to establish compliance of the controlled transaction with the "arm's length" principle. If there are several sources, it is necessary to indicate all of them separated by a comma and a space.

Note These fields will be used when generating the lines of the report's appendix.

5. On the Item card, the Manufacturer Code, Brand Code and Customs Category Code (UCC FEA / SCPS ) must be filled in.

Note For the selected SCPS code, the Classification Service Code according to the Classification of Foreign Economic Services must be filled in on the Customs Categories page.

6. If a counterparty is both a customer and a vendor, it is necessary to link the Customer and Vendor cards through a Contact. To do this, create a Contact of the Company type from the Customer or Vendor page. For the contact, set up business relationships as both a customer and a vendor. For more details on creating and configuring contacts, refer to Managing contacts.

Generating the Control Operation Report

To generate the report, follow these steps:

1. Click the button to open the Search function and enter Control Operation Reports, then follow the corresponding link.
2. On the Control Operation Reports page, click Actions > New Document > New to create a new report.
3. A new report card will be created, where you need to fill in the following fields:

General tab:

Field	Description
Period From	Specifies the date that is the beginning of the reporting period.
Period To	Specifies the date that is the end date of the reporting period.
Report Type	Specifies the type of report: reporting, new reporting or clarifying.
Non-Resident	Specifies if the organization is a non-resident.
Country Registration NR	Specifies the registration country of an non-resident.
Name Tax Administration NR	Specifies the name of the non-resident's tax administration.
Permanent Establishment	Specifies the Permanent Establishment of a non-resident.
Name Permanent Establishm	Specifies the name of the permanent establishment of a non-resident.
Registration No. PE	Specifies the EDRPOU code of a permanent establishment.
Address PE	Specifies the address of permanent establishment.
Name Tax Administration PE	Specifies the name of the permanent establishment's tax administration.

Lines tab:

Field	Description
Account Type	Specifies the counterparty type that is a party to the controlled operation. The Company type is used if the counterparty is both a customer and a vendor, and you need the report to include both purchase and sales transactions.
Account No.	Specifies the counterparty number that is a party to the controlled operation. Select the counterparty according to the specified type.
Document No.	Specifies the document (appendix) number of the report.

Note The Account Country Name , Party Code fields will be automatically filled in from the counterparty's data. The Amount LCY, Quantity, Count lines fields will be automatically filled in after generating the report appendix.

4. Next, you need to generate the report appendices. To do this, select the report line and click Card in the Lines section.

5. The appendix card will open, where you need to fill in the following fields:

General tab:

Field	Description
Document Types	Specifies the type of documents that will be taken into account when generating the report lines. Possible options: Invoices, Credit Memos, Invoices and Credit Memos.
Research Side	Specifies the party for which the profitability index is checked according to the method. Filled in only for the following methods: resale price method, "cost plus", net profit method. If the taxpayer chose themselves, then we put "1", if a non-resident counterparty - then "0".
Amount LCY Rounding	Specifies the rounding factor for the "Amount (LCY)" field in the report.

6. On the Reason Codes and Party Relation Codes tabs, fill in the corresponding codes for the basis and indicators.
7. Click Create lines to populate the report with rows according to the specified parameters.

Note Report lines are generated based on the posted Invoices and Credit Memos, excluding reversed entries.

The fields Shipment Terms (Incoterms), Place of delivery, Entry Code, Side Code, Conformance Method Code, Profitability Indicator, Profitability Indicator Value, Source Type Code, Source Type Name are automatically filled from the agreement card of the Customer or Vendor.

Currency Exchange Rate in the report lines is populated depending on whether capitalization of exchange differences occurred during the application of the payment, whether the goods were revalued at the exchange rate of the applied prepayment. To perform capitalization of exchange differences, ensure that the Capitalize FX on Prepayment option is activated on the General Ledger Setup page before applying the payment.

• If capitalization of exchange differences occurred, the system calculates the average (calculated) currency exchange rate at which the asset was actually formed (weighted average rate across all currency payments);
• If capitalization of exchange differences is not performed, the system always records the currency exchange rate from the Official Exchange Rate value.

Important: When Capitalize FX on Prepayment is disabled, to correctly form the amount (LCY), it is necessary to apply a payment to the invoice. In this case, exchange differences are accrued on the payment, not on the invoice — and the amount (LCY) will correspond to the recalculation of the original amount at the currency exchange rate without taking into account exchange differences on the invoice.

8. On the Totals tab of the appendix, the total amount for the generated lines will be displayed in the local currency, along with the total quantity of items or services and the count of generated lines.

Export Report to XML

Once the report and all its appendices are generated, their data can be exported to XML. On the report card, click Actions > Export Report to XML.

Note To export the Report and appendices separately, on the respective cards, click Actions > Export to XML.

During the export of appendices to XML, the rows are sorted by date regardless of the document type.

Application TP to the CIT Declaration

Application TP — Self-adjustment of the controlled transaction price and the taxpayer’s tax liabilities is intended for adjusting the amount of income and/or expenses in cases where the contractual prices for goods, works, or services do not correspond to arm’s length prices in controlled transactions determined in accordance with Article 39 of the Tax Code of Ukraine.

Accordingly, it is prepared and submitted by corporate income taxpayers that had controlled transactions during the reporting period and perform a self-adjustment of the controlled transaction price and the amount of tax liabilities, provided that such adjustment does not result in a reduction of the amount of tax payable to the budget (subparagraph 39.5.4 of the Tax Code of Ukraine).

Application TP is linked to the Control Operation Report therefore, it is completed based on the lines of the Control Operation Report.

Required Setup

Application TP is not a standalone attachment separate from the tax return. To establish a link with the created CIT Declaration, it is necessary to fill in the fields on the Control Operation Report report card, General tab:

Field	Description
Statutory Report Code	Specifies the code of the related regulatory report. It is necessary to select the regulatory report code corresponding to the CIT Declaration.
Statutory Report Data No.	Specifies the data number of the regulatory report. It is necessary to select the data number of the created CIT Declaration to which Application TP will be attached.

Generation of Application TP

Lines of the Control Operation Report appendix have been supplemented with new fields:

Field	Description
Operation No.	Specifies the number of control operation.
Transfer Pr. App	Indicates whether the lines are to be included in the Transfer Pricing Appendix of the CIT Declaration.
Price/ profitability range value	Specifies the value of Price/ profitability range value to which CIT liabilities were adjusted.
Adjustment Amount	Specifies the adjustment amount for CIT liabilities.
Securities	Indicates whether the item relates to securities.

Filling in the values in the Application TP table, in the section “When selling goods (works, services)” columns 16–17.3 or “When purchasing goods (works, services)” columns 18–19.3, depends on whether the transactions relate respectively to sales or purchases. To distinguish transactions by their nature, the TP Operation Type field is used in the rows of the Control Operation Report appendices. This field is filled in automatically when the report lines are generated. The field can take the values Sale or Purchase and can be displayed on the page via Personalization. The filling logic is the same for all counterparty Account Types: Vendor, Customer, Company.

Filtering of Application TP Lines

On the Control Operation Report page, in the Lines section, a toggle Show only Appl TP lines is available. When it is enabled, the lines table is filtered to display only those records where Application TP = Yes.

Export of Application TP to XML

To export Application TP to XML, click Export Application TP to XML on the Control Operation Report page. This function generates and downloads an XML file of the Application TP report based on all appendices included in the Control Operation Report.