Worldwide transfer pricing reference guide 2014

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Pakistan Taxing authority and tax law Taxing authority: Federal Board of Revenue. Tax law: Section 108 of the Income Tax Ordinance, 2001 (the Ordinance) deals with the powers of the Commissioner of Income Tax (the Commissioner) with regards to the determination of the arm’s length value of any transaction between associates. In order to determine the arm’s length result of any such transaction, the Income Tax Rules, 2002 (the Rules) state that the following methods may be applied by the Commissioner. These methods are identical to the methods available under the OECD Guidelines. (a) The Comparable Uncontrolled Price method (CUP) The price quoted for a transaction between uncontrolled parties on similar terms and conditions will be considered. (b) The Resale Price method Difference in the resale gross margin of the two transactions would be considered and compared for determining whether the transaction between controlled parties is on arm’s length basis or not. (c) The Cost Plus method The cost plus markup realized in an uncontrolled transaction will be considered as a basis to determine whether a similar transaction between controlled parties is on an arm’s length basis or not. (d) The Profit Split method Where group of associates is formed and the transactions are so interrelated that a separate basis is not possible to identify the arm’s length results for a similar transaction between uncontrolled persons, the profit sharing basis agreed between independent persons forming an association would be considered. It should be noted that between clauses (a), (b) and (c), the method that, having regard to all the facts and circumstances, provides the most reliable measure of arms’ length result as in the opinion of the Commissioner shall be applied. The method in clause (d) shall apply only where the methods in clauses (a), (b) and (c) cannot reliably be applied. Pakistan has concluded around 63 income tax treaties which contain an article which resembles Article 9 OECD Model Tax Convention on “Associated Enterprises.” Worldwide transfer pricing reference guide 222
Panama Taxing authority and tax law Taxing authority: Tax Administration of Panama (Autoridad Nacional de Ingresos Públicos, or ANIP). Tax law: • Law No. 33 enacted in 2010 (Law 33) and applicable for fiscal years 2011 and onward, established the transfer pricing provisions in the Tax Code (Chapter IX of Title I of the Fourth Book); Articles 762–A to 762–K • Law No. 52, that modified Law 33 and related Sections of the Tax Code, was enacted in August 2012 and is applicable to fiscal years ending after August 2012 • Executive Decree No. 958 with regulations on the related Transfer Pricing Sections of the Tax Code (Chapter IX of Title I of the Fourth Book) Relevant regulations and rulings Prior to fiscal year 2011, Law 33 introduced norms to adapt the Tax Code to International Double Tax Treaties (DTT) which applied only to taxpayers with transactions conducted with affiliates resident in countries with which Panama had signed DTT. With Law 52, all cross-border intercompany transactions conducted by Panamanian taxpayers are now subject to transfer pricing obligations, according to modified Section 762–D of Tax Code. OECD Guidelines treatment The OECD Guidelines can be relied upon for interpretation of the rules, as long as they do not contradict the Panamanian Tax Code or international tax treaties. Priorities/pricing methods The transfer pricing methods in Panama are: CUP, Resale Price, Cost Plus, Profit Split, Residual Profit Split and TNMM. The selection of the method should be based on the characteristics of the transaction under analysis, the circumstances of the case and the one that best respects the arm’s length principle. Transfer pricing penalties Failure to file the transfer pricing information return results in a penalty of 1% of the total amount of intercompany transactions. For the penalty calculation, the gross amount of the transactions will be considered regardless of their nature; i.e., regardless of whether they are items of income, expense or deduction. Penalty relief There is currently no penalty relief regime in place. Documentation requirements Contemporaneous transfer pricing documentation related to cross-border intercompany transactions must be kept and maintained in Spanish. Documentation must include: • The complete identification details of the taxpayer and of the non-resident related parties with whom transactions are carried out, as well as evidence of direct and indirect participation between related parties • A detailed description of the nature, characteristics and amount of all intercompany transactions of the taxpayer, including the transfer pricing method employed It is also necessary to include the method selection process and specification of the price or margin, or range of prices or margins applied Worldwide transfer pricing reference guide 223
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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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Colombia (continued) Penalty relief
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Republic of Congo Taxing authority
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Costa Rica Taxing authority and tax
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Croatia Taxing authority and tax la
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Croatia (continued) Frequency of ta
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Czech Republic Taxing authority and
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Denmark Taxing authority and tax la
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Denmark (continued) Documentation d
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Dominican Republic Taxing authority
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Dominican Republic (continued) Expe
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Ecuador (continued) Priorities/pric
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Ecuador (continued) Return disclosu
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Egypt Taxing authority and tax law
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Egypt (continued) Frequency of tax
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El Salvador (continued) Transfer pr
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Estonia Taxing authority and tax la
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Fiji Taxing authority and tax law T
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Fiji (continued) Frequency of tax a
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Finland (continued) Documentation r
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France (continued) Transfer pricing
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France (continued) Documentation re
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France (continued) Expected reactio
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Gabon (continued) Transfer pricing-
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Georgia (continued) Documentation r
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Germany Taxing authority and tax la
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Germany (continued) For late filing
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Ghana Taxing authority and tax law
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Ghana (continued) APA opportunity T
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Greece (continued) Transfer pricing
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Guatemala Taxing authority and tax
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Honduras Taxing authority and tax l
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Hong Kong (SAR) Taxing authority an
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Hong Kong (SAR) (continued) APA opp
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Hungary (continued) Priorities/pric
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Hungary (continued) Documentation r
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Iceland Taxing authority and tax la
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India Taxing authority and tax law
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India (continued) Documentation req
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Indonesia Taxing authority and tax
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Indonesia (continued) Frequency of
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Ireland Taxing authority and tax la
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Ireland (continued) Frequency of ta
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Israel (continued) Priorities/prici
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Italy Taxing authority and tax law
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Italy (continued) Transfer pricing
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Italy (continued) Frequency of tax
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Japan (continued) Transfer pricing
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Japan (continued) APA opportunity U
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Kazakhstan Taxing authority and tax
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Kazakhstan (continued) Frequency of
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Kenya (continued) Documentation req
Page 171 and 172: Kosovo (continued) Documentation re
Page 173 and 174: Kuwait (continued) Documentation re
Page 175 and 176: Latvia Taxing authority and tax law
Page 177 and 178: Lebanon Taxing authority and tax la
Page 179 and 180: Lithuania Taxing authority and tax
Page 181 and 182: Luxembourg Taxing authority and tax
Page 183 and 184: Former Yugoslav Republic of Macedon
Page 185 and 186: Malaysia Taxing authority and tax l
Page 187 and 188: Malaysia (continued) Frequency of t
Page 189 and 190: Maldives (continued) Statute of lim
Page 191 and 192: Malta (continued) Return disclosure
Page 193 and 194: Mauritius (continued) APA opportuni
Page 195 and 196: Mexico (continued) Transfer pricing
Page 197 and 198: Mexico (continued) Return disclosur
Page 199 and 200: Montenegro (continued) Frequency of
Page 201 and 202: Morocco (continued) Transfer pricin
Page 203 and 204: Myanmar Taxing authority and tax la
Page 205 and 206: Namibia Taxing authority and tax la
Page 207 and 208: Netherlands Taxing authority and ta
Page 209 and 210: Netherlands (continued) Statute of
Page 211 and 212: New Zealand Taxing authority and ta
Page 213 and 214: New Zealand (continued) Frequency o
Page 215 and 216: Nigeria Taxing authority and tax la
Page 217 and 218: Norway Taxing authority and tax law
Page 219 and 220: Norway (continued) Frequency of tax
Page 221: Oman (continued) Frequency of tax a
Page 225 and 226: Panama (continued) Expected reactio
Page 227 and 228: Papua New Guinea (continued) Docume
Page 229 and 230: Peru Taxing authority and tax law T
Page 231 and 232: Peru (continued) Frequency of tax a
Page 233 and 234: Philippines (continued) Transfer pr
Page 235 and 236: Poland Taxing authority and tax law
Page 237 and 238: Poland (continued) Transfer pricing
Page 239 and 240: Poland (continued) Return disclosur
Page 241 and 242: Poland (continued) APA opportunity
Page 243 and 244: Portugal (continued) Transfer prici
Page 245 and 246: Portugal (continued) APA opportunit
Page 247 and 248: Qatar (continued) OECD guidelines t
Page 249 and 250: Qatar (continued) Return disclosure
Page 251 and 252: Romania (continued) Documentation r
Page 253 and 254: Russian Federation Taxing authority
Page 255 and 256: Russian Federation (continued) Freq
Page 257 and 258: Saudi Arabia (continued) Transfer p
Page 259 and 260: Senegal (continued) Documentation r
Page 261 and 262: Serbia Taxing authority and tax law
Page 263 and 264: Singapore Taxing authority and tax
Page 265 and 266: Singapore (continued) Frequency of
Page 267 and 268: Slovak Republic (continued) Documen
Page 269 and 270: Slovenia Taxing authority and tax l
Page 271 and 272: 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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EY | Assurance | Tax | Transactions
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Worldwide transfer pricing reference guide 2014

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