Controlled Operations Report

The Controlled Operations Report is submitted by corporate income taxpayers if, during the reporting period, they carried out transactions with non-residents that met the criteria for controlled operations.

Required Setup

Before creating the report, make sure that all required setup has been completed:

1. On the General Ledger Setup page, on the Numbering tab, a number series for the report is specified in the Controlled Operations Report Nos. field.
2. All required codes have been created on the Codes Controlled Operations page.
3. The appropriate code is specified in the Country/Region Code field on the Customer or Vendor card.

Note
The ISO Numeric Code field must be populated on the Countries/Regions page for the selected country code.

4. The Person Code field must be populated on the Related Person tab of the Customer or Vendor card.
5. The Related Persons tab on the Customer or Vendor agreement card must be completed:

Field	Description
Shipment Terms (Incoterms)	Specifies the shipment terms code according to Incoterms.
Place of delivery (Incoterms)	Specifies the place of delivery according to Incoterms.
Entry Code	Specifies the operation name code according to the codes defined by law.
Side Code	Specifies the operation side code according to the defined operation side codes.
Conformance Method Code	Specifies the code of the method used to determine whether the terms of the controlled operation comply with the arm's length principle.
Profitability Indicator	Specifies the profitability indicator code used to determine whether the terms of the controlled operation comply with the arm's length principle.
Profitability Indicator Value	Specifies the numerical value of the operation's profitability indicator as a percentage.
Source Type Code	Specifies the information source type code used to determine whether the controlled operation complies with the arm's length principle.
Source Type Name	Specifies the name of the information source used to determine whether the controlled operation complies with the arm's length principle. If there are several sources, specify all of them separated by a comma and a space.

Note
These fields are used when creating the lines of the report application.

6. The Manufacturer Code, Brand Code, and Customs Category Code fields are populated on the item card.

Note
The Classification Service Code field must be populated on the Customs Categories page for the selected DKPP code.

7. If a counterparty is both a customer and a vendor, link the Customer and Vendor cards through a Contact. To do this, create a Contact of type Organization from the Customer or Vendor page. Set up business relations for the contact both as a customer and as a vendor. For more information about creating and setting up contacts, see Contact management.

Creating the Controlled Operations Report

To create the report, complete the following steps:

1. Select to open Search, enter Control Operation Reports, and then select the corresponding link.
2. On the Control Operation Reports page, select Actions > New > New to create a new report.
3. A new report card is created. Populate the following fields:

General tab:

Field	Description
Period From	Specifies the start date of the period for which the report is created.
Period To	Specifies the end date of the period for which the report is created.
Report Type	Specifies the report type: Reporting or Clarifying.
Non-Resident	Specifies whether the organization is a non-resident. When enabled, the Information On Non-Resident tab with additional fields is displayed.
Country Registration NR	Specifies the country where the non-resident is registered.
Name Tax Administration NR	Specifies the name of the non-resident's tax administration.
Permanent Establishment	Specifies whether the non-resident has a permanent establishment.
Name Permanent Establishment	Specifies the name of the permanent establishment.
Registration No. PE	Specifies the registration number of the permanent establishment.
Address PE	Specifies the address of the permanent establishment.
Name Tax Administration PE	Specifies the name of the tax administration of the permanent establishment.

Lines tab:

Field	Description
Account Type	Specifies the type of counterparty that is a party to the controlled operation. Specify the counterparty type for the report. The Company type is used when a counterparty is both a customer and a vendor and the report must include both purchase and sales operations.
Account No.	Specifies the counterparty number that is a party to the controlled operation. Select a counterparty according to the specified type.
Document No.	Specifies the number of the report application.

Note
The Account Country Name and Person Code fields are populated automatically from the counterparty data.
The Amount LCY, Quantity, and Count Lines fields are populated automatically after the report application is created.

4. Create the report applications. Select a report line and select Card in the Lines section.
5. The report application card opens. Populate the following fields:

General tab:

Field	Description
Document Types	Specifies the document types to include when creating report lines. Available options: Invoices, Cr.Memos, or Invoices+Cr.Memos.
Research Side	Specifies the side for which the profitability indicator is checked according to the method. This is populated only for the resale price, cost-plus, and net profit methods. If the taxpayer selects itself, specify 1; if the non-resident counterparty is selected, specify 0.
Amount LCY Rounding	Specifies the rounding factor for amounts in the local currency in the Amount (LCY) field of the report.

6. On the Reason Codes and Party Relation Codes tabs, populate the applicable reason and relation codes.
7. Select Create lines to populate the report with lines according to the specified parameters.

Note
Report lines are created based on posted Invoices and Cr.Memos. Reversed operations are excluded.
The Shipment Terms (Incoterms), Place of delivery, Entry Code, Side Code, Conformance Method Code, Profitability Indicator, Profitability Indicator Value, Source Type Code, and Source Type Name fields are populated automatically from the Customer or Vendor agreement card.

The Exchange Rate in report lines is populated depending on whether exchange rate differences were capitalized when the payment was applied, that is, whether the item was revalued using the exchange rate of the applied prepayment. To capitalize exchange rate differences, make sure that Capitalize ERD for Prepayments is enabled on the General Ledger Setup page.

• If exchange rate differences were capitalized, the system calculates the average calculated exchange rate at which the asset was actually formed, that is, the weighted average exchange rate for all payments in the currency.
• If exchange rate differences are not capitalized, the system always records the exchange rate from the Official Exchange Rate value.

Important: When capitalization of exchange rate differences is disabled, apply the payment to the invoice to calculate Amount (LCY) correctly. In this case, exchange rate differences are calculated for the payment rather than the invoice, and Amount (LCY) corresponds to the conversion of the original amount using the currency exchange rate without exchange rate differences in the invoice.

8. After the application lines have been created, select Renumber Lines on the Control Operation Report card to populate operation numbers in sequence. The system automatically fills in the Operation No. field in the correct order.
9. The Totals tab of the application displays the total amount of the created lines in the local currency, the total quantity of goods or services, and the number of created lines.

Exporting the Report and Applications to XML

After the report and all its applications have been created, export their data to XML. On the report card, select Actions > Export Report to xml.

Note
To export the report and applications separately, select Actions > Export to xml on the corresponding cards.
When applications are exported to XML, the lines are sorted by date regardless of the document type.

TP Appl. to the CIT Declaration

The TP Appl. - Self-adjustment of the controlled operation price and the taxpayer's tax liabilities is used to adjust income and/or expenses when contractual prices for goods, works, or services do not correspond to arm's length prices in controlled operations defined according to Article 39 of the Tax Code of Ukraine.

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

The TP Appl. is related to the Controlled Operations Report, so it is populated based on the report lines.

Required Setup

The TP Appl. is not independent of the declaration. To link it to the created CIT Declaration, populate the following fields on the Control Operation Report card, on the General tab:

Field	Description
Statutory Report Code	Specifies the code of the related statutory report. Select the Statutory Report Code that corresponds to the CIT Declaration.
Statutory Report Data No.	Specifies the data number of the statutory report. Select the number of the created CIT Declaration report data to which the TP Appl. will be attached.

Creating the TP Appl

Lines of the Controlled Operations Report have been extended with the following fields:

Field	Description
Operation No.	Specifies the sequential number of the controlled operation line within the current document batch. Values range from 1 to 20,000, the maximum number of lines in one batch.
Transfer Pr. App	Specifies whether the line must be included in the TP Appl. of the CIT Declaration. Only lines with the value Yes are exported to XML.
Price/ profitability range value	Specifies the price or profitability range value to which the CIT liabilities were adjusted. The field is editable and is rounded to two decimal places.
Adjustment Amount	Specifies the amount of the corporate income tax adjustment. The field is editable and is rounded to two decimal places.
Securities	Specifies whether the item is a security. This is used when creating the XML structure: - lines with the value No are included in the "Regarding goods (works, services), except securities" table; - lines with the value Yes are included in the "Securities, operations with which are shown in the CP appendix" table.

Filling in the TP Appl. table for the For the sale of goods (works, services) section, columns 16-17.3, or the For the purchase of goods (works, services) section, columns 18-19.3, depends on whether the operation is a sale or a purchase. The Operation Type TP field in the report application lines is used to distinguish the operations by their substance. It is populated automatically when report lines are created. The field has the values Sales or Purchase and can be added to the page through personalization. The logic is the same for all Account Type values: Vendor, Customer, and Company.

Filtering TP Appl. Lines

The Show only TP Appl. Lines action is available in the Lines section of the Control Operation Report page. When enabled, the line table is filtered to display only lines with Transfer Pr. App = Yes.

Exporting the TP Appl. to XML

To export the TP Appl. to XML, select Export TP Appl. to xml on the Control Operation Report page. The function creates and exports the TP Appl. XML file for all applications of the Controlled Operations Report.