Sri Lanka has published amended Transfer Pricing (TP) Regulations that update the existing regulations of 2018. The amended regulations were published in the Official Gazette on 2 March 2021 and apply retroactively from 1 April 2020.
The amended regulations contain several changes announced in December 2020 regarding the Master file and CbC report requirements, which includes a deferral in the effective date of these requirements to reporting fiscal year beginning on or after 1 April 2020 (from assessment year 2020/21).
The amended regulations update CbC reporting threshold from group revenue of LKR 115 billion to group revenue of EUR 750 million or LKR equivalent in the previous year.
The amended regulations also update the Master file preparation threshold from declared revenue of LKR 7.5 billion to declared revenue of EUR 50 million or LKR equivalent for each year of assessment. The Local file and/or Master file submission deadline is also changed from within 30 calendar days of request to within 60 calendar days of request.
