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Australia Updates Simplified Transfer Pricing Record Keeping Options FAQs — Orbitax Tax News & Alerts

On 7 April 2016, the Australian Taxation Office published updated frequently asked questions (FAQs) on the simplified transfer pricing record keeping options that are available for eligible businesses. The options are meant to reduce compliance costs and are generally available for three consecutive years. When a simplified option is applied, the transactions or arrangements covered by the option will not be reviewed for transfer pricing purposes. Specific simplified options are provided for:

  • The following from 29 June 2013:
    • Small taxpayers;
    • Distributors;
    • Intra-group services; and
    • Low-level loans - inbound; and
  • The following from 1 July 2015:
    • Materiality;
    • Management and administration services; and
    • Technical services.

Each simplified record keeping option type includes its own set of eligibility conditions. When applying a simplified option, the taxpayer is required to self-assess whether the conditions for eligibility are met and maintain documentation to substantiate the eligibility.

Click the following links for the Simplifying transfer pricing record keeping – FAQs.