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Simplified Transfer Pricing — ATO Guidance Updated

The ATO has updated its guidance on simplified transfer pricing record-keeping options that are available to companies, trusts and partnerships where they meet the eligibility criteria.

There are seven simplified transfer pricing record keeping options available:

  • small taxpayers
  • distributors
  • low value adding intra-group services
  • low-level inbound loans
  • materiality
  • technical services, and
  • low-level outbound loans.

The update to Practical Compliance Guideline PCG 2017/2 provides the:

  • maximum interest rate for small related party inbound loans for the 2021 year
  • minimum interest rate for small related party outbound loans for the 2021 year.

Where taxpayers qualify and choose to rely on the simplified transfer pricing option, they must nevertheless keep documentation that can substantiate compliance with the arm’s length principle, under the terms of the concession, as required by law under self assessment, look at these funds transfer pricing example

For further information, please refer here, and If you need any help regarding Transfer pricing Contact Us at Andersen in Australia

For any enquiries related to this update, contact us today.

Benedicte Olrik

Benedicte is the Managing Director of Transfer Pricing at Andersen Australia. With 16+ years of global experience, she excels in APAs, transfer pricing compliance, planning and policy

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