All Things Newz
Law \ Legal

Draft Transfer Pricing Rules – Public Consultation – Transfer Pricing

To print this article, all you need is to be registered or login on

On 22 December 2021, the Commissioner for Revenue issued draft Transfer Pricing Rules
for public consultation. The draft Rules prescribe the requirement
for the application of the arm’s length principle for the
pricing of cross-border transactions between associated enterprises
as defined and with permanent establishments. Essentially, the
arm’s length price is the amount that independent parties would
have agreed in relation to the arrangement had those independent
parties entered into that arrangement. The requirement will be an
income tax requirement and will not affect commercial arrangements
or other tax liabilities. Whilst it is envisaged that the OECD
Transfer Pricing Guidelines will constitute an important source of
reference in the application of the rules, the methodologies for
determining the arm’s length price are yet to be designated by
the Commissioner for Revenue in guidelines yet to be published.

The draft Rules specifically exclude micro, small or
medium-sized enterprises from scope. A de minimis
aggregate arm’s length value of all cross-border arrangements
shall also be set, below which the Rules will not apply.

Draft provisions around the issue of Unilateral Transfer Pricing
Rulings by the Revenue and Advance Pricing Agreements to be entered
into by the Revenue with one or more foreign competent authorities
are also included in the draft Rules.

The publication follows on Malta’s commitment to implement
specific Transfer Pricing rules in accordance with the current
global standards related to the arm’s length principle. With
such intentions, enabling provisions were introduced
in in the Budget Implementation Measures Act 2021

permitting such Rules. It is envisaged that the Rules will come
into force with effect from financial years commencing on or after
1 January 2024.

Interested parties are invited to submit feedback on the draft
Rules to the Revenue by 28 February 2022, including on the
direction of Transfer Pricing tax policy, alternative approaches
and any other Transfer Pricing issues.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.


Corporate Tax In The UAE

BSA Ahmad Bin Hezeem & Associates LLP

Since the implementation of Corporate Tax (CT) into the UAE was announced on 31 January 2022, there has been much excitement (good or bad) and curiosity about how it would apply and what it would entail.

Living And Working In Cyprus

Aptus Legal

A guide on residence and working permit requirements for living and working in Cyprus, including a summary of key facts relating to the Cyprus personal income tax system…

The 60-day Tax Residency Certificate

Vrikis & Kouppi LLC

The following new circular which was issued by the Tax Authorities in Cyprus in early 2022, provides additional guidance and clarity as to the tax residency according to the legal provision of the 60-day stay …

Costa Rica’s Free Zone Regime: An Attractive Market?

TMF Group BV

The Latin American country is encouraging investment with its free trade zone setup, offering tax and operational advantages for companies looking to do business in the jurisdiction, under the rules of the regime.

Source link

Related posts

Cannabis Control Board Approves Regulations & Application For Conditional Adult-Use Retail Dispensary Licenses –

The Artificial Intelligence Act – New Technology

Major Delaware Court Of Chancery M&A And Corporate Law Cases – September 2022 – Shareholders