Worldwide transfer pricing reference guide 2014

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Germany (continued) Statute of limitations on transfer pricing assessments (continued) §175a General Tax Code stipulates that tax assessments can be amended due to the result of a MAP/EU arbitration procedure up to one year after the effective date of such agreement, irrespective of whether the aforementioned statutes of limitations have expired before. Return disclosures/related party disclosures Apart from transfer pricing documentation requirements, there are currently no specific disclosure requirements. Transfer pricing-specific returns Apart from transfer pricing documentation requirements, no separate returns for related party transactions are currently required. Frequency of tax audit and transfer pricing scrutiny by the tax authority The likelihood of a tax audit in Germany is high for domestic and foreign groups of companies. Usually, a tax audit covers a three to four year period on a continuous basis. The risk of transfer pricing issues being scrutinized during a tax audit is also high, and continuously rising. Due to the documentation requirements, and in light of the stricter law effective 1 January 2008, it is expected that transfer pricing issues will continue to attract significant attention in tax audits. It is expected that transactions qualifying as exceptional business transactions under the documentation provisions, such as the transfer of functions, will particularly attract the tax auditors’ attention. Further, many tax audits increasingly focus on (brand) royalty charges and management services cost allocations into Germany. The likelihood that, if transfer pricing is reviewed as part of the audit, the transfer pricing methodology will be challenged is also high. APA opportunity APAs are generally available. The German Ministry of Finance issued an APA circular on 5 October 2006, which defines the APA procedures and provides guidance with regard to the negotiation of APAs. Additionally, the Annual Tax Act 2007 introduced fees for APAs. The administrative competence for APAs is centralized in the Federal Central Tax Office. The APA process can take anywhere from eighteen months to several years from application to conclusion. An agreement reached between two competent authorities will be made conditional in two regards: the taxpayer must consent to the intergovernmental agreement, and must waive its right to appeal against tax assessments, to the extent that they are in line with the content of the APA. Expected reaction to OECD Report on BEPS The OECD Report and discussions on BEPS in general add to the ongoing public debate on fair earnings and taxation of companies and individuals in Germany. This debate is being taken very seriously and is expected to have an effect on the tax audit climate. Legal documentation requirements exist and the taxpayers’ compliance with making available relevant information is being enforced. The same is true for IP structures, which are being increasingly scrutinized in tax audits. Masterfile documentation is maintained by many German taxpayers based on the concept proposed by the European Joint Transfer Pricing Forum and could be amended for additional requirements going forward. Overall, with specific transfer pricing regulations already in place and with tax authorities’ focus on transfer pricing audits already increasing, the BEPS debate will further intensify these developments. Worldwide transfer pricing reference guide 120
Ghana Taxing authority and tax law Taxing authority: Ghana Revenue Authority (GRA). Tax law: Transfer Pricing Regulations, 2012 (L.I 2188). Relevant regulations and rulings The Finance Minister has, in accordance with the provisions of Section 114 (1) (d) of the Internal Revenue Act, 2000, enacted the Transfer Pricing Regulations, 2012 (L.I 2188) which are effective from 14 September 2012. The transfer pricing rules follow the arm’s length principle and require the use of the “most appropriate” method to price related party transactions. The rules apply to transactions between: • Taxpayers in a controlled relationship • A Permanent Establishment (PE) and its head office • A PE and other related branches of the PE • A taxpayer and another taxpayer who are in an employment relationship The regulations apply to the following intercompany transactions between affiliated companies: • The purchase and sale of goods • The purchase, sale, lease or use of a tangible asset • The purchase, sale, lease or use of an intangible asset • The provision of management services, technical services and other intra group services • The provision of finance and other financial arrangements • Rent and hire charges • Any other transaction that may affect the profit or loss of an entity Thin capitalization: An exempt-controlled resident entity, a non resident person, other than a financial institution, is deemed to be thinly capitalized if the ratio of the offshore related party interest bearing debt to equity exceeds 2:1. Interest deductions or exchange losses arising on debt in excess of the 2:1 are disallowed. An exempt-controlled resident entity is a resident entity of which at least 50% of the underlying ownership or control is held by a nonresident. OECD Guidelines treatment The rules follow the 2010 OECD Guidelines. Priorities/pricing methods The transfer pricing rules require the use of the “most appropriate” method to price related party transactions. Similar to the OECD Guidelines, the transfer pricing methods approved by the Commissioner-General are: • The CUP method • The Resale Price method • The Cost Plus method • The Transactional Profit Split method • TNMM Worldwide transfer pricing reference guide 121
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Worldwide Transfer Pricing Referenc
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Worldwide transfer pricing referenc
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Nigeria 215 Norway 217 Oman 220 Pak
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The content is current as of 28 Feb
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CUP (comparable uncontrolled price)
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Albania (continued) Priorities/pric
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Algeria Taxing authority and tax la
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Algeria (continued) Return disclosu
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Angola (continued) Transfer pricing
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Argentina Taxing authority and tax
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Argentina (continued) Transfer pric
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Australia Taxing authority and tax
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Australia (continued) Priorities/pr
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Australia (continued) Documentation
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Australia (continued) Frequency of
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Austria (continued) Documentation r
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Bahrain Taxing authority and tax la
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Bangladesh (continued) Penalty reli
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Belgium Taxing authority and tax la
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Belgium (continued) Statute of limi
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Bolivia Taxing authority and tax la
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Botswana Taxing authority and tax l
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Brazil (continued) Relevant regulat
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Brazil (continued) Priorities/prici
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Brunei Taxing authority and tax law
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Bulgaria (continued) Transfer prici
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Bulgaria (continued) Return disclos
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Cameroon Taxing authority and tax l
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Canada Taxing authority and tax law
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Canada (continued) Documentation re
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Chile Taxing authority and tax law
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Chile (continued) Return disclosure
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China (continued) Documentation req
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Colombia Taxing authority and tax l
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Page 71 and 72: Republic of Congo Taxing authority
Page 73 and 74: Costa Rica Taxing authority and tax
Page 75 and 76: Croatia Taxing authority and tax la
Page 77 and 78: Croatia (continued) Frequency of ta
Page 79 and 80: Czech Republic Taxing authority and
Page 81 and 82: Denmark Taxing authority and tax la
Page 83 and 84: Denmark (continued) Documentation d
Page 85 and 86: Dominican Republic Taxing authority
Page 87 and 88: Dominican Republic (continued) Expe
Page 89 and 90: Ecuador (continued) Priorities/pric
Page 91 and 92: Ecuador (continued) Return disclosu
Page 93 and 94: Egypt Taxing authority and tax law
Page 95 and 96: Egypt (continued) Frequency of tax
Page 97 and 98: El Salvador (continued) Transfer pr
Page 99 and 100: Estonia Taxing authority and tax la
Page 101 and 102: Fiji Taxing authority and tax law T
Page 103 and 104: Fiji (continued) Frequency of tax a
Page 105 and 106: Finland (continued) Documentation r
Page 107 and 108: France (continued) Transfer pricing
Page 109 and 110: France (continued) Documentation re
Page 111 and 112: France (continued) Expected reactio
Page 113 and 114: Gabon (continued) Transfer pricing-
Page 115 and 116: Georgia (continued) Documentation r
Page 117 and 118: Germany Taxing authority and tax la
Page 119: Germany (continued) For late filing
Page 123 and 124: Ghana (continued) APA opportunity T
Page 125 and 126: Greece (continued) Transfer pricing
Page 127 and 128: Guatemala Taxing authority and tax
Page 129 and 130: Honduras Taxing authority and tax l
Page 131 and 132: Hong Kong (SAR) Taxing authority an
Page 133 and 134: Hong Kong (SAR) (continued) APA opp
Page 135 and 136: Hungary (continued) Priorities/pric
Page 137 and 138: Hungary (continued) Documentation r
Page 139 and 140: Iceland Taxing authority and tax la
Page 141 and 142: India Taxing authority and tax law
Page 143 and 144: India (continued) Documentation req
Page 145 and 146: Indonesia Taxing authority and tax
Page 147 and 148: Indonesia (continued) Frequency of
Page 149 and 150: Ireland Taxing authority and tax la
Page 151 and 152: Ireland (continued) Frequency of ta
Page 153 and 154: Israel (continued) Priorities/prici
Page 155 and 156: Italy Taxing authority and tax law
Page 157 and 158: Italy (continued) Transfer pricing
Page 159 and 160: Italy (continued) Frequency of tax
Page 161 and 162: Japan (continued) Transfer pricing
Page 163 and 164: Japan (continued) APA opportunity U
Page 165 and 166: Kazakhstan Taxing authority and tax
Page 167 and 168: Kazakhstan (continued) Frequency of
Page 169 and 170: Kenya (continued) Documentation req
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Kosovo (continued) Documentation re
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Kuwait (continued) Documentation re
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Latvia Taxing authority and tax law
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Lebanon Taxing authority and tax la
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Lithuania Taxing authority and tax
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Luxembourg Taxing authority and tax
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Former Yugoslav Republic of Macedon
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Malaysia Taxing authority and tax l
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Malaysia (continued) Frequency of t
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Maldives (continued) Statute of lim
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Malta (continued) Return disclosure
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Mauritius (continued) APA opportuni
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Mexico (continued) Transfer pricing
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Mexico (continued) Return disclosur
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Montenegro (continued) Frequency of
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Morocco (continued) Transfer pricin
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Myanmar Taxing authority and tax la
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Namibia Taxing authority and tax la
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Netherlands Taxing authority and ta
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Netherlands (continued) Statute of
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New Zealand Taxing authority and ta
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New Zealand (continued) Frequency o
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Nigeria Taxing authority and tax la
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Norway Taxing authority and tax law
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Norway (continued) Frequency of tax
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Oman (continued) Frequency of tax a
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Panama Taxing authority and tax law
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Panama (continued) Expected reactio
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Papua New Guinea (continued) Docume
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Peru Taxing authority and tax law T
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Peru (continued) Frequency of tax a
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Philippines (continued) Transfer pr
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Poland Taxing authority and tax law
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Poland (continued) Transfer pricing
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Poland (continued) Return disclosur
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Poland (continued) APA opportunity
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Portugal (continued) Transfer prici
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Portugal (continued) APA opportunit
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Qatar (continued) OECD guidelines t
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Qatar (continued) Return disclosure
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Romania (continued) Documentation r
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Russian Federation Taxing authority
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Russian Federation (continued) Freq
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Saudi Arabia (continued) Transfer p
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Senegal (continued) Documentation r
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Serbia Taxing authority and tax law
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Singapore Taxing authority and tax
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Singapore (continued) Frequency of
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Slovak Republic (continued) Documen
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Slovenia Taxing authority and tax l
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Slovenia (continued) Transfer prici
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South Africa (continued) Penalty re
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South Korea (Republic of Korea) Tax
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South Korea (Republic of Korea) (co
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Spain (continued) Penalty relief So
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Spain (continued) APA opportunity T
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Sri Lanka (continued) Return disclo
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Sweden (continued) Documentation re
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Switzerland Taxing authority and ta
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Taiwan Taxing authority and tax law
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Taiwan (continued) Return disclosur
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Tanzania Taxing authority and tax l
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Thailand Taxing authority and tax l
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Thailand (continued) Frequency of t
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Turkey (continued) Priorities/prici
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Uganda Taxing authority and tax law
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Ukraine Taxing authority and tax la
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Ukraine (continued) Transfer pricin
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United Kingdom Taxing authority and
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United Kingdom (continued) Transfer
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United States (continued) Transfer
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Uruguay Taxing authority and tax la
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Uruguay (continued) APA opportunity
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Venezuela Taxing authority and tax
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Venezuela (continued) Expected reac
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Vietnam (continued) Relevant regula
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Vietnam (continued) Documentation d
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Zimbabwe Taxing authority and tax l
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Zimbabwe (continued) Relevant regul
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Transfer pricing contacts Area cont
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Jurisdiction contacts • El Salvad
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Jurisdiction contacts • Rep. of C
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Worldwide transfer pricing reference guide 2014

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