in Transfer Pricing by
Is transfer pricing documentation is compulsory now? Can anyone explain the status of transfer pricing regulations in Sri Lanka?

2 Answers

+1 vote
by (4.8k points)

Inland Revenue has published a gazette dated 25th of March 2015 governing transfer pricing. According to the gazette taxpayers are required to submit details of transactions with associated undertaking as a part of the Return under section 107 of the Inland Revenue Act with effect from the year of assessment 2015/2016.

This means that the Return of income to be submitted on or before 30th November 2016 must accompany the information required under the gazette. Accordingly, taxpayers are required to specify the pricing method used to determine the arm’s length price, which would mean that taxpayers must possess transfer pricing documentation as required by the regulations prior to filing the Return. The gazette also places responsibility on the directors and the auditors in certifying the documentation relating to transactions between associated undertakings.

+1 vote
by (550 points)

Transfer pricing documentation is going to be the crucial part here. Here is some guideline for the same.

We need to have proper justifiable documents to support the pricing. If your transfer pricing is found not to be at arm's length, you may have to adjust the tax computations accordingly. 

Download transfer pricing guideline sri lanka

 

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