The General Authority of Zakat and Tax (GAZT) on 1 June 2020 released the second edition of the transfer pricing guidelines.
The first edition of the transfer pricing guidelines was released in March 2019, following the release in February 2019 of the “final” transfer pricing bylaws.
The second edition of the transfer pricing guidelines includes the following:
As has been observed, most of the changes in the second edition of the transfer pricing guidelines appear to be merely cosmetic in nature. However, taxpayers now have the possibility to “opt out” of transfer pricing if they can substantiate that no effective control relationship exists. It remains unclear how taxpayers are expected to demonstrate this fact and how GAZT would approach this situation.
Read a July 2020 report [PDF 1.76 MB] prepared by the KPMG member firm in Pakistan
Read also a July 2020 report prepared by KPMG International
For more information, contact the Global Leader of KPMG’s Global Transfer Pricing Services:
Komal Dhall | +1 212 872 3089 | email@example.com
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