On 10 August 2020, Mr. Ken Ofori-Atta, the Minister of Finance of Ghana submitted new Transfer Pricing (TP) Regulations 2020 (L.I. 2412) before Parliament. Accordance to Article 11(7) of the Constitution of the Republic of Ghana, 1992, the new Transfer Pricing Regulations matured after 21 sitting days for Parliament.
The new Regulations repealed the Transfer Pricing Regulations 2012 (L.I. 2188) and incorporate many of the revisions introduced by the July 2017 edition of the OECD’s Transfer Pricing Guidelines.
The new Transfer Pricing Regulations 2020 apply to “arrangements” between “persons who are (regarded as being) in a controlled relationship under the Act and any other tax law.”
According to new Regulations, now define the “Documentation” to be maintained as (a) Master File and (b) Local File, and they are required to be maintained contemporaneously.
The new Transfer Pricing Regulations 2020 introduces Country-by-Country (CbC) reporting requirements for multinational enterprise groups with annual consolidated group revenues of 2.9b Ghana cedis or above in the fiscal year immediately preceding the Reporting Fiscal Year.
The effective date of the transfer pricing regulations is unknown, but the regulations have been published in the official gazette.
