The Commissioner General Issues Transfer Pricing Guidelines to enable smooth application of the Transfer Pricing Regulations

  • The Commissioner General has issued new Transfer Pricing Guidelines which provides guidance on the application of Tax Administration (Transfer Pricing) Regulations, 2018
  • The Guideline has been issued in line with Regulation 16 of the Tax Administration (Transfer Pricing) Regulation, 2018 where by the document will be used as a formal guidance to all persons with controlled transactions.
  • Further, the guidelines allows for application of extension of time to submit the Transfer Pricing Documentation for persons who fall within the threshold of 10 billion upon demonstration of good cause. The extension shall not exceed the extension period for filing a return of income which is 30 days
  • Specifically, the guidance covers the following;
  1.   The arm’s length principle
  2.   Functional analysis
  3.   Methods of determining the arm’s length price
  4.   Comparability analysis
  5.   Factors determining comparability
  6.   Transfer pricing documentation requirements
  7.   Application of OECD or UN documents
  8.   Special considerations for intra group services and financing
  9.   Special considerations for intangible property and commodity transactions and;
  10.   Advance Pricing Arrangement (APA)

  Read the Transfer Pricing Guideline here.