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13.4.2. Documentation Requirements

Disclosure requirements

Resident companies with annual turnover or total assets exceeding GNF 100 billion must submit a transfer pricing return along with the annual corporate tax return including a summary of the company's transfer pricing policy and details of:

  • The nature and value of controlled transactions;
  • Name and address of related parties; and
  • The transfer pricing method for each controlled transaction.

Standard Documentation

Companies with their registered seat in Guinea and meeting certain conditions are required to contemporaneously prepare and keep documentation substantiating their transfer pricing policies with non-resident related entities. The documentation requirement applies to:

  • Companies with annual revenues or total asset value in excess of GNF 1000 billion effective 1 January 2019 (previously GNF 175 billion);
  • Companies which at the closing of the tax year directly or indirectly hold more than 50% of the share capital or voting power in an entity with annual revenues or total asset value in excess of GNF 1000 billion effective 1 January 2019 (previously GNF 175 billion); or
  • Companies which at the closing of the tax year are directly or indirectly held for more than 50% of their capital or voting rights by an entity with annual revenues or total asset value in excess of GNF 1000 billion effective 1 January 2019 (previously GNF 175 billion).

The following transfer pricing documentation requirements have been introduced in the Finance Law of 2019 and are effective from 1 January 2019:

A transfer pricing documentation covering transactions with a value of more than GNF 1 billion must be submitted electronically to the tax authorities no later than 3 months following the deadlines for the corporate tax return and should contain the following:

  • Master file:
    • Details of the activity and legal structure of the group, including ownership and geographic location of entities;
    • Description of functions undertaken, assets used, risks assumed and list of main intangibles held by the group;
    • Description of the supply chain within the group with respect to activities affecting the company; and
    • Details of the transfer pricing policy of the group.
  • Local file:
    • Description of the activity and the commercial strategy of the company including a functional analysis;
    • Detailed functional analysis for any related entity involved in controlled transactions;
    • Description of controlled transactions, including description of transaction types, value, intragroup activities (including copies of intragroup agreements), transfer pricing method adopted (including functions performed, assets used, risks assumed and a justification of the method selected) and a comparative analysis;
    • Specific transaction details as prescribed under the domestic law for transactions such as purchases from related entities made by a company acting as a central purchasing center, transactions relating to listed goods, and transactions relating to reselling of goods by related entities;
    • Details from analytical accounting that are relevant for transfer pricing analysis; and
    • An analysis of performance and various economic and competition factors in the business industry of the company.

Penalties

In case of a failure to submit accurate transfer pricing documentation, a fine equal to 1% of the value of transactions falling under the documentation requirements will be imposed after an initial warning issued by the tax inspector.

Country-by-Country Reporting

Guinea has to date (January 2020) not implemented a Country-by-Country reporting requirement under its domestic laws. As on the same date, Guinea has not yet joined the OECD’s Inclusive Framework, membership of which presupposes commitment to implement the BEPS Minimum Standards, including Country-by-Country reporting.

Guinea has signed the OECD-Council of Europe Convention on Mutual Administrative Assistance in Tax Matters as amended by the 2010 protocol.