Worldwide Transfer Pricing Reference Guide - Ernst & …

1 Worldwide Transfer Pricing Reference Guide20142 Worldwide Transfer Pricing Reference guide2 Worldwide Transfer Pricing Reference guideWorldwide Transfer Pricing Reference guidePlanning Transfer Pricing strategies which support a company s business activities and tax return position and Transfer Pricing practices on a global basis require knowledge of a complex web of country tax laws, regulations, rulings, methods and requirements. The EY Worldwide Transfer Pricing Reference Guide is a tool designed to help international tax executives quickly identify Transfer Pricing rules, practices and approaches. These various approaches must be understood in order for a company to carry out both compliance and planning activities. The information included in the Guide now covers more than 110 countries and territories in which EY offers Transfer Pricing services.

2 The Guide outlines basic information for the covered jurisdictions regarding their Transfer Pricing tax laws, regulations and rulings; Organisation for Economic Co-operation and Development (OECD) guidelines treatment, priorities and Pricing methods; penalties; the potential for relief from penalties; documentation requirements and deadlines; statute of limitations; required disclosures; Transfer Pricing -specific returns; frequency of tax audits and Transfer Pricing scrutiny by the tax authority; opportunities for advance Pricing agreements (APAs); and expected reaction to the OECD Report on BEPS. A web-based version of this brochure can be found at Please check this web page periodically for late-breaking country developments. For a more detailed discussion of any of the country-specific Transfer Pricing rules, or to obtain further assistance in addressing and resolving intercompany Transfer Pricing issues, please contact your local EY office or the relevant jurisdiction contact listed at the back of this brochure.

3 Please note the availability of other Transfer Pricing materials such as survey reports that share views of tax authorities and tax directors ( ). EY also annually produces The Worldwide Corporate Tax Guide ; The Worldwide Personal Tax Guide ; and the Worldwide VAT, GST and Sales Tax Transfer Pricing Reference guideLegend 7 Glossary of terms 8 Albania 10 Algeria 13 Angola 16 Argentina 19 Armenia 22 Australia 23 Austria 30 Bahrain 33 Bangladesh 34 Belgium 37 Bolivia 41 Botswana 43 Brazil

4 44 Brunei 49 Bulgaria 50 Cambodia 54 Cameroon 55 Canada 57 Chile 61 China 64 Colombia 67 Republic of Congo 71 Costa Rica 73 Croatia 75 Republic of Cyprus 78 Czech Republic 79 Denmark 81 Dominican Republic 85 Ecuador 88 Egypt 93El Salvador 96 Estonia 99 Fiji 101 Finland 104 France 106 Gabon 112 Georgia 114 Germany 117 Ghana 121 Greece 124 Guatemala 127 Honduras 129 Hong Kong (SAR)

5 131 Hungary 134 Iceland 139 India 141 Indonesia 145 Iraq 148 Ireland 149 Israel 152 Italy 155 Japan 160 Jordan 164 Kazakhstan 165 Kenya 168Ko s ovo 170 Kuwait 172L a o s 174L a t v ia 175Le b a n o n 17 7Li bya 178 Lithuania 179 Luxembourg 181 Former Yugoslav Republic of Macedonia 183 Malaysia 185 Maldives 188 Malta 190 Mauritius

6 192 Mexico 194 Montenegro 198 Morocco 200 Myanmar 203 Namibia 205 Netherlands 207 New Zealand 211 Nicaragua 214 Contents4 Worldwide Transfer Pricing Reference guideNigeria 215N o r way 217 Oman 220 Pakistan 222 Panama 223 Papua New Guinea 226 Paraguay 228 Peru 229 Philippines 232 Poland 235 Portugal 242 Qatar 246 Romania 250 Russian Federation 253 Saudi Arabia 256 Senegal 258 Serbia 261 Singapore 263

7 Slovak Republic 266 Slovenia 269 South Africa 272 South Korea (Republic of Korea) 275 Spain 278 Sri Lanka 282 Sweden 284 Switzerland 287Ta iwa n 28 9 Tanzania 293 Thailand 295 Turkey 298 Uganda 301 Ukraine 303 United Arab Emirates (UAE) 306 United Kingdom 307 United States 310 Uruguay 313 Uzbekistan 316Ve n ezu e l a 317 Vietnam 320 Zimbabwe 325 Transfer Pricing contacts 3295 Worldwide Transfer Pricing Reference guide6 Worldwide Transfer Pricing Reference guide6 Worldwide Transfer Pricing Reference guideThe content is current as of 28 February 2014 unless otherwise noted.

8 This publication should not be regarded as offering a complete explanation of the tax matters referred to and is subject to changes in the law and other applicable authority and tax law: name of taxing authority and statutory provisions currently in effect in each jurisdiction. Relevant regulations and rulings: current Transfer Pricing rules and regulatory provisions in effect in each jurisdiction. OECD Guidelines treatment: consideration given by the taxing authority to the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax methods: Transfer Pricing methods allowed, as well as the priority of each method. Transfer Pricing penalties: discussion of potentially applicable Transfer Pricing penalties if a taxpayer is determined not to be in compliance with the rules imposed by the taxing authority.

9 Penalty relief: potential ways in which penalties may be reduced or avoided. Documentation requirements: governing tax authority requirements or recommendations that taxpayers prepare and maintain written documentation to confirm that the amounts charged in related party transactions are consistent with the arm s length standard. Documentation deadlines: deadline for preparing Transfer Pricing documentation. Statute of limitations on Transfer Pricing assessments: discussion of the applicable statute of limitations regarding Transfer Pricing examination and assessments. Return disclosures/related party disclosures: information on disclosures required from taxpayers regarding related party transactions. Frequency of tax Audits/ Transfer Pricing scrutiny: discussion of the level of frequency of the tax authority subjecting taxpayers to general audits, scrutinizing related party transactions and challenging the Transfer Pricing methodology employed.

10 This is based on the past experience of our local tax professionals and is not a forward-looking prediction. APA opportunity: discussion of the possibility of obtaining an advance Pricing agreement with the tax reaction to OECD Report on BEPS: perspective on initiated or expected reactions in the respective legislation to the OECD Report on Transfer Pricing Reference guideGlossary of termsAPA (advance Pricing agreement) An agreement between a tax authority and an MNE about the determination of the appropriate Transfer Pricing method to be used for Pricing intercompany transactions. APAs may be unilateral, bilateral (two governments) or multilateral (three or more governments). Arm s length principle The standard adopted by the OECD and in many jurisdictions, which mandates that the result related parties obtain from an intercompany transaction approximates the result that uncontrolled parties would have obtained had they undertaken the same transaction u