The General Authority of Zakat and Tax (GAZT) has passed the Transfer Pricing Bylaws (TPB). Based on an accepted international framework, the bylaw has been effective since February 15 2019 and all taxable persons must comply with the bylaws in all their transactions.
The GAZT has extended all periods to submit the local file and master file documentation by 60 days for any submissions due in 2019.
In the drafting of the TPB, the GAZT considered the best international practices to increase compliance and transparency in the Kingdom, subsequently improving investor confidence and the investor climate.
The bylaws include 26 articles divided into 12 chapters of the basic principles of transfer pricing via transactions between related persons or persons under common control. It also includes transaction pricing methods to determine the arm’s length price of transactions between related persons and the documentation needed from the taxpayer (including local file, master file and County by Country Report [CbC]).
View the Transfer Pricing Bylaws here.