Worldwide transfer pricing reference guide 2014

Republic of Congo
Taxing authority and tax law
Taxing authority: General Directorate of Taxes and Domains.
Tax law: General Tax Code.
Relevant regulations and rulings
Tax rulings or circulars regarding the application of transfer pricing rules have not yet been released, in spite of the recent reform
introduced by the Finance Act 2012.
OECD guidelines treatment
There is no formal recognition of the OECD Guidelines in the Congolese legislation.
Theoretically, all pricing methods that are accurately justified in the transfer pricing documentation of the company may be accepted by
the taxing authorities.
Priorities/pricing methods
The arm’s length principle from the OECD Guidelines is the only principle expressly mentioned in the Congolese legislation.
Transfer pricing penalties
There is no accurate provision on how to determine underpayments; however it is likely that the taxing authorities may refer to the
arm’s length principle to raise illicit profits shifting.
The penalty for failure to maintain transfer pricing documentation is not specified.
Penalty relief
In order to mitigate or relieve the risk of assessment, it is recommended to have:
• Transfer pricing documentation in line with the policy followed by the group
• Information/supporting documents/data-entries on various transactions with related entities
• Tax rulings relating to the approval of pricing methods used by the company
• Global corporate structure map, with a description of functions/roles of each entity engaged in business and/or financial relations with
the company
• Bookkeeping compliant with the local accounting system
In general, the prompt and complete disclosure of information requested in case of tax audit is seen as a feature of good co-operation
from the taxpayer, which in turn may result in a fair treatment by the taxing authorities.
Documentation requirements
Transfer pricing documentation is effectively required for companies partially or wholly controlled or managed by multinationals.
Transfer pricing documentation must include the following information:
• The group’s policy on transfer pricing rules setting out the various pricing methods selected
• Agreement/chart or any other instrument relating to the attribution of costs, risks and functions within the group
• List of moveable assets held or used, especially patents, know-how and copyrights, and recapitulation of royalties paid up
• Cash pooling agreement
• Commissioning, brokerage, technical, administrative and financial support contracts, etc.,
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