viernes, 20 de marzo de 2015

Taiwan Ministry of Finance announces amendments to transfer pricing assessment rules

On March 6, 2015, the Taiwan Ministry of Finance (MOF) announced the amendments to eight existing articles, and introduced one new article to the Regulations Governing Assessment of Profit-seeking Enterprise Income Tax on Non-Arm's Length Transfer Pricing (TP Assessment Rules).

Main points of the amendments:


  • Introduction of the concepts in Chapter 9 of the OECD Transfer Pricing Guidelines concerning business restructuring.  Companies engaged in business restructuring in FY2014 are required to disclose and document in their FY2014 transfer pricing reports whether the restructuring was conducted in compliance with the arm's length principle.  This is expected to heavily increase the efforts required to prepare compliant transfer pricing documentation for applicable companies in Taiwan.
  • Clarification that the profit split method may be considered if the relevant entities make unique and valuable contributions to the controlled transactions they are involved in.
  • Requirement for companies being merged or dissolved to prepare transfer pricing reports along with their final income tax returns.
  • Lowering of the advance pricing agreement (APA) application threshold and revising the APA application timeline.
  • Introduction of the use of a company's costs and expenses to reversely calculate its revenue by applying the prescribed Profit Standard of the Same Trade (Profit Standard), in cases where the company cannot provide reliable revenue information.
Source & more info: PwC

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