FILE PIC: BURS offices

Transfer pricing regulations which were to be published in March this year are expected to be out end of this month.

This week, a tax consultant, Jonathan Hore, said the Ministry of Finance and Economic Development has advised that the regulations are still with the Attorney General.

The pending Transfer Pricing Regulations are part of the Income Tax Amendment Act No 38 of 2018.

“This is a key change in the way corporate tax is administered and it puts a number of obligations on affected taxpayers, mainly through the preparation of what is known as contemporaneous Transfer pricing agreements,” said Hore.

He said Income Tax Act’s provisions regarding this tax can however not be implemented without Transfer Pricing Regulations and these were expected around March 2019 so as to give taxpayers time to acquaint themselves with the BURS requirements.

Transfer pricing relates to the prices at which goods and services are transferred between or among related parties.

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