On 8 February 2024, the Norwegian Tax Administration (NTA) released a guidance regarding the amendments of the transfer pricing disclosures in tax returns for organizations, due by 31 May 2024 for the fiscal year ending in 2023. The guidance clarifies that not all modified disclosure requirements apply to FY 2023 tax returns. The guidance outlines the mandatory, voluntary, and unnecessary information disclosures in the returns. Furthermore, the guidance explains which queries are required or optional.
Revised mandatory disclosures include:
- The number of entities owned or controlled by the reporting entity exceeding 50%;
- The functional profile reports based on business activity codes from Table 2 of the country-by-country report. This excludes intellectual property holding, management, and rendering services to unrelated parties.
- The disclosure of the information on a reporting entity’s role as guarantor for agreements by group companies in the year;
- The specific transaction categories for reporting of related party transactions;
- The total amounts for financial income, operating income, extraordinary considerations linked to purchases or takeovers, financial charges, operating expenses, receivables, debt, and the value of guarantees given or received by the reporting entity.
Revised voluntary disclosures include:
- The clarification of exemptions from preparing transfer pricing documentation;
- The confirmation if the reporting entity rightfully owns the cash pooling arrangement;
- The explanation of whether the reporting entity possesses intellectual property utilized by other group entities.
Additional disclosures not mandatory for FY 2023 tax returns include:
- The confirmation if the reporting entity incurred operating losses in two of the last three years, whether these were budgeted, and the rationality for the outcomes;
- The operating margin details for the counter party’s biggest transaction;
- The exploring of yes/no inquiries on diverse subjects;
- The disclosure of withholding taxes;
- The provision for reporting controlled transaction category values for each distinct counterparty, including their respective country codes and identification numbers. Only the collective value for all counterparties, alongside country codes, should be provided;
- The figures for financial income, operating income, etc., disclosed by the counterparty.
