Worldwide transfer pricing reference guide 2014

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Bangladesh Taxing authority and tax law Taxing authorities: National Board of Revenue (NBR) Tax laws: • Section 107A to 107J of the Income Tax Ordinance, 1984 as amended by Finance Act 2012 • Rule 70 to 75 of Statutory Regulatory Order 2012 The Finance Act 2012 introduced transfer pricing regulations in Bangladesh. However, the transfer pricing provisions shall come into force from the date specified by the NBR through notification in the official Gazette. Since, no notification has been issued by the NBR; the transfer pricing regulations are presently not applicable in Bangladesh. Relevant regulations and rulings The pricing of any income or expense arising from international transactions between associated enterprises will need to be determined with regard to the arm’s length principle, using methods prescribed under Bangladesh transfer pricing legislation. Associated enterprises are those enterprises where more than 25% voting power in one is held by the other or a common parent holds more than 25% of voting power in both such enterprises. Transfer pricing provisions are applicable to the following types of transactions between associated enterprises, with at least one of them being a non-resident: • Purchase, sale or lease of tangible or intangible property • Provision of services • Lending or borrowing money • A mutual agreement or arrangement for cost allocation/apportionment • Any other transaction having a bearing on the profits, income, losses, assets, financial position or economic value of such enterprises Transactions with a third party is deemed to be as transactions between associated enterprises if the third party has a prior agreement with the associated enterprise, or if the terms of the relevant transaction are determined in substance between the third party and the associated enterprise. An enterprise means a person or a venture of any nature and also includes a permanent establishment of such person or venture. Priorities/pricing methods Bangladesh legislation prescribes the following methods: CUP, RPM, Cost Plus, Profit Split, TNMM and any other method. Where it can be demonstrated that none of the first five methods can reasonably be applied to determine the arm’s length price for an international transaction, Section 107C allows the use of any other method that can yield a result that is consistent with the arm’s length price. For the purpose of determining a comparable uncontrolled transaction, Rule 71(3) provides that data pertaining to only the relevant financial year should be used. However, the rule permits the use of data prior to the relevant financial year if it can be substantiated that such data bears facts which could have an influence on the analysis of comparability. OECD guidelines treatment Bangladesh legislation is broadly based on the OECD Guidelines. Five of the six methods prescribed in the legislation to compute arm’s length prices are in conformity with the OECD Guidelines. Transfer pricing penalties • For a failure to keep, maintain or furnish any information or documents as required by Section 107E, the taxpayer is imposed a penalty not exceeding 1% of the value of international transaction • For a failure to comply with the notice or requisition under section 107C of the ordinance by the Deputy Commissioner of Taxes, the taxpayer is imposed a penalty not exceeding 1% of the value of international transaction • For not furnishing an Accountant’s Certificate, the taxpayer is fined an amount not exceeding BDT300,000 (approximately US$3,900) Worldwide transfer pricing reference guide 34
Bangladesh (continued) Penalty relief No penalty relief regulation has been provided to date. Documentation requirements A detailed list of mandatory documents is listed in Rule 73. The categories of documentation required are: • Profile of the multinational group including the consolidated financial statements of the group • Profile of each member of the group including business relationships between each member • Profile of each associate enterprise including tax registration numbers and financial statements of any associated enterprise operating in Bangladesh • Business description • The nature and terms (including prices) of international transactions • Description of functions performed, risks assumed and assets employed • Record of any financial estimates • Record of comparability evaluation • Description of methods considered • Reasons for selection of method • Details of transfer pricing adjustments • Any other information or data relating to the associated enterprise, which may be relevant for determination of the arm’s length price The above documentation requirements shall not be applicable in case of a taxpayer, where the aggregate value of international transactions entered into during a financial year, as recorded in the books of accounts does not exceed BDT30,000,000 (approximately US$390,000). Documentation deadlines Currently, the transfer pricing regulations are not in force and the documentation deadlines are yet to be notified. Statute of limitations on transfer pricing assessments Currently the assessments (where a matter has been referred to the transfer pricing officer) are to be completed within 48 months of the close of the financial year (1 July to 30 June). However, if the tax authorities determine that income has escaped assessment, it may be reopened within three years of the close of the financial year. Return disclosures/related party disclosures No specified disclosures are required to be filed with the income tax return. Transfer pricing-specific returns Under Section 107F, an accountant’s report certifying that the documents and information maintained by a taxpayer is in line with the transfer pricing regulations of Bangladesh, is required to be provided by taxpayers entering into a transaction. The aggregate value of such transaction should exceed BDT30,000,000 (approximately US$390,000) in the books of accounts. Frequency of tax audit and transfer pricing scrutiny by the tax authority Currently there is no transfer pricing scrutiny risk in Bangladesh as the transfer pricing provisions have not yet come into force. Worldwide transfer pricing reference guide 35
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Page 5 and 6: Nigeria 215 Norway 217 Oman 220 Pak
Page 7 and 8: The content is current as of 28 Feb
Page 9 and 10: CUP (comparable uncontrolled price)
Page 11 and 12: Albania (continued) Priorities/pric
Page 13 and 14: Algeria Taxing authority and tax la
Page 15 and 16: Algeria (continued) Return disclosu
Page 17 and 18: Angola (continued) Transfer pricing
Page 19 and 20: Argentina Taxing authority and tax
Page 21 and 22: Argentina (continued) Transfer pric
Page 23 and 24: Australia Taxing authority and tax
Page 25 and 26: Australia (continued) Priorities/pr
Page 27 and 28: Australia (continued) Documentation
Page 29 and 30: Australia (continued) Frequency of
Page 31 and 32: Austria (continued) Documentation r
Page 33: Bahrain Taxing authority and tax la
Page 37 and 38: Belgium Taxing authority and tax la
Page 39 and 40: Belgium (continued) Statute of limi
Page 41 and 42: Bolivia Taxing authority and tax la
Page 43 and 44: Botswana Taxing authority and tax l
Page 45 and 46: Brazil (continued) Relevant regulat
Page 47 and 48: Brazil (continued) Priorities/prici
Page 49 and 50: Brunei Taxing authority and tax law
Page 51 and 52: Bulgaria (continued) Transfer prici
Page 53 and 54: Bulgaria (continued) Return disclos
Page 55 and 56: Cameroon Taxing authority and tax l
Page 57 and 58: Canada Taxing authority and tax law
Page 59 and 60: Canada (continued) Documentation re
Page 61 and 62: Chile Taxing authority and tax law
Page 63 and 64: Chile (continued) Return disclosure
Page 65 and 66: China (continued) Documentation req
Page 67 and 68: Colombia Taxing authority and tax l
Page 69 and 70: Colombia (continued) Penalty relief
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 and 120:
Germany (continued) For late filing
Page 121 and 122:
Ghana Taxing authority and tax law
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
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 and 222:
Oman (continued) Frequency of tax a
Page 223 and 224:
Panama Taxing authority and tax law
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
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 and 286:
Sweden (continued) Documentation re
Page 287 and 288:
Switzerland Taxing authority and ta
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:
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Worldwide transfer pricing reference guide 2014

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