The Commissioner General of Inland Revenue has published gazette no. 1907/26 dated 25 March 2015 on Transfer Pricing Regulations. It was made available on the Government Printer’s website on 27 May 2015. The gazette requires the taxpayer to submit details of transactions with associated parties to the Inland Revenue Department (IRD) as a part of the Return under section 107 of the Inland Revenue Act (IRA) of 2006.
As per the gazette, taxpayers are required to specify the pricing method used to determine the arm’s length price. This would mean that taxpayers must possess transfer pricing (TP) documentation as required by the regulations prior to filing the Return. The gazette also requires the approved accountant obtain a certification by the auditor that all transactions are carried out on an arm’s length basis and that the necessary documentation has been checked by the auditor. This certificate is in addition to the certificate to be submitted by the Directors as a part of the Director’s Report in the published annual accounts that all transactions between associated parties are carried out on an arm’s length basis.
