The Australian Taxation Office (ATO) recently released guidelines that simplify transfer pricing record-keeping options to reduce the Australian transfer pricing documentation compliance burden for certain taxpayers and international related-party dealings.
The guidance allows small taxpayers (less than $25 million in revenue), distributors (less than $50 million in revenue) and taxpayers with a low materiality of international related-party dealings (in particular, intra-group services and cross-border loans) to apply the simplified transfer pricing record-keeping options, subject to meeting some eligibility criteria.
The options may afford taxpayers subject to country-by-country reporting obligations a partial exemption from ATO’s local file.
Read an April 2017 report prepared by the KPMG member firm in Australia
$ = Australian dollar
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.