Worldwide transfer pricing reference guide 2014

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Sweden (continued) APA opportunity In Sweden, formal APA procedures exist as of 1 January 2010. Expected reaction to OECD Report on BEPS In a joint statement issued in September 2013, Sweden, Denmark, Finland, Iceland, Norway and the United States stated that the fight against tax avoidance and evasion should be a top priority in all relevant international discussions. The six countries acknowledged the importance of the engagement of the G20 and expressed support for the work of the OECD on BEPS and automatic exchange of information as the new global standard. The countries agreed to make a concerted and collective effort to improve the transparency of companies and legal arrangements. The Swedish Ministry of Finance has dedicated resources to BEPS. Sweden is likely to embrace the initiatives on country-by-country reporting and documentation Masterfile, but it is unclear how the updated guidance on intangibles, once finalized, will be received. Worldwide transfer pricing reference guide 286
Switzerland Taxing authority and tax law Tax authority: • Cantonal Tax Administration (tax assessments) • Federal Tax Administration (SFTA; competent authority) There are no specific references to transfer pricing in Swiss tax law. However, legal support for adjusting the taxable profits of a taxpayer is derived from the arm’s length principle in Article 58 of the Federal Direct Tax Act on a federal level, as well as in Article 24 of the Federal Law on the Harmonization of the Cantonal and Communal Taxes on a cantonal level. In fact, these two articles reject a tax deduction for non-commercially justifiable expenditures. This in turn provides the legal background for an adjustment to taxable profit in cases of deviations from the arm’s length principle. In addition, for intercompany loans, there are administrative directives regarding “safe-harbor regulations,” which allow for the setting of interest rates without any specific documentation. Relevant regulations and rulings There are no specific transfer pricing regulations in Swiss tax law. However, a number of administrative directives (including circulars and circular letters) implicitly or explicitly refer to the determination of transfer prices, including: • Circular letter No. 6 from 6 June 1997 regarding hidden equity • Circular letter No. 8 from 18 December 2001 regarding international profit allocation of principal companies • Circular letter No. 4 from 19 March 2004 referring to the taxation of service companies • Circular from 25 February 2013 regarding interest payments between related group entities (updated yearly) OECD Guidelines treatment The SFTA instructed the Cantonal Tax Administrations, in its Circular Letter of 4 March 1997, to unconditionally adhere to the OECD Guidelines for transfer pricing matters. There are no specific tax regulations on business restructurings in Switzerland, i.e., Switzerland follows the OECD view. Priorities/pricing methods The SFTA adheres to the OECD Guidelines and hence, the application of the respective methods therein. According to Circular Letter 4/2004, the profit margin for service companies must be determined in accordance with the arm’s length principle (i.e., for each individual taxpayer on the basis of comparable uncontrolled transactions considering appropriate margin ranges). The Circular Letter also implicitly states that the cost plus method is the most appropriate method for service companies to price their services, based on a functional and risk analysis. However, concerning the provision of financial and management services, the cost plus method shall only be accepted in exceptional cases. The SFTA uses in principle a full cost approach, including all direct and indirect costs. In exceptional cases, if the taxpayer can prove, based on appropriate documents and records, that the applied margin is too high, the SFTA can allow for a lower margin. Transfer pricing penalties There are no specific transfer pricing penalties, but general penalty rules apply. However, (non-tax-deductible) penalties are only imposed in cases of fraud or negligence. Although no penalties apply in the event of adjustments, interest charges for late payment are due in such a case. Penalty relief There are no special provisions for penalty reductions. Worldwide transfer pricing reference guide 287
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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
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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
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
Page 273 and 274: South Africa (continued) Penalty re
Page 275 and 276: South Korea (Republic of Korea) Tax
Page 277 and 278: South Korea (Republic of Korea) (co
Page 279 and 280: Spain (continued) Penalty relief So
Page 281 and 282: Spain (continued) APA opportunity T
Page 283 and 284: Sri Lanka (continued) Return disclo
Page 285: Sweden (continued) Documentation re
Page 289 and 290: Taiwan Taxing authority and tax law
Page 291 and 292: Taiwan (continued) Return disclosur
Page 293 and 294: Tanzania Taxing authority and tax l
Page 295 and 296: Thailand Taxing authority and tax l
Page 297 and 298: Thailand (continued) Frequency of t
Page 299 and 300: Turkey (continued) Priorities/prici
Page 301 and 302: Uganda Taxing authority and tax law
Page 303 and 304: Ukraine Taxing authority and tax la
Page 305 and 306: Ukraine (continued) Transfer pricin
Page 307 and 308: United Kingdom Taxing authority and
Page 309 and 310: United Kingdom (continued) Transfer
Page 311 and 312: United States (continued) Transfer
Page 313 and 314: Uruguay Taxing authority and tax la
Page 315 and 316: Uruguay (continued) APA opportunity
Page 317 and 318: Venezuela Taxing authority and tax
Page 319 and 320: Venezuela (continued) Expected reac
Page 321 and 322: Vietnam (continued) Relevant regula
Page 323 and 324: Vietnam (continued) Documentation d
Page 325 and 326: Zimbabwe Taxing authority and tax l
Page 327 and 328: Zimbabwe (continued) Relevant regul
Page 329 and 330: Transfer pricing contacts Area cont
Page 331 and 332: Jurisdiction contacts • El Salvad
Page 333 and 334: Jurisdiction contacts • Rep. of C
Page 335: EY | Assurance | Tax | Transactions
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