Mandatory transfer pricing documentation is proposed | KPMG | GLOBAL

South Africa: Mandatory transfer pricing documentation is proposed

Mandatory transfer pricing documentation is proposed

The South African Revenue Service (SARS) published a draft “public notice” that would, if finalised, would effectively impose mandatory transfer pricing documentation rules on certain taxpayers. The specific documentation that would be required to be prepared, retained, and maintained is detailed in the draft public notice.


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The transfer pricing documentation rules would apply to: 

  • Any person that is a member of a “group of companies” when any controlling company owns at least 50% of the equity shares or voting rights in one or more controlled companies;
  • The consolidated South African turnover of this group of companies exceeds R1 billion, and 
  • There is at least one cross-border related-party transaction (an “affected transaction” as defined in section 31(1(a) of the Income Tax Act (the arm’s length test in para (b) is disregarded))

Even if the South African turnover of the group did not exceed the R1 billion threshold, relevant persons would be required to keep and retain records that would allow it to support any cross-border related-party transaction. According, the recordkeeping requirement would essentially would be universal. 


Read a February 2016 report [PDF 520 KB] prepared by the KPMG member firm in South Africa: Transfer Pricing: Draft Public Notice requiring certain multinationals to keep and retain/maintain documentation

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