On 1st April 2018, the Taiwanese government defined how companies should calculate transfer pricing disclosure and documentation thresholds when they operate less than a full year due to fiscal year change, merger, or acquisition. According to the domestic law, when filing tax returns, companies should analyze whether their annual turnover and intercompany transaction amount reach the threshold for disclosing intercompany transactions; if so, companies should submit their transfer pricing reports or related documents to the tax authorities. If companies operate less than a full year due to a fiscal year change, merger or acquisition, they should convert revenue and intercompany transaction amounts into a full year by proportion to determine if the transfer pricing threshold is met.
