The President's decision stated that members of the group of multinational enterprises covered by the coverage will report information about whether they are the final parent business or proxy business, and which business will report on behalf of the group, as well as the accounting period, in relation to the first country-based report, to the administration by the end of the sixth month following the publication of the President's decision (end of August/2020), and it was stated that the administration has the right to extend these periods to six months.
Under the administration of this authority, 31231 4 01.09.2020 date and published in the Official Gazette serial no.general communiqué on disguised profit distribution via transfer pricing (lu (“new communiqué“) country-based reporting for the notification form, starting a little later than the accounting period the accounting period to 2019, including exclusive and special 01.01.2019, 1 Series until 23:59 on 30.10.2020 no.lu it decided that the content in the annex (Annex-5) of the General communique (“General communique“) on the distribution of implicit earnings through Transfer pricing and the disclosure contained in the Internet Tax Office will be filled out electronically via the internet Tax Office.
The notification form for country-based reporting will be submitted to the administration by the end of June of each year in the following years. In addition, the country-based report for the 2019 accounting period will be submitted to the administration by 31.12.2020.
Other Regulations Covered By The New Communique
Other regulations contained in the communique are as follows::
Section “1 - Legal Regulations” of the General communique 13 of the corporate tax code. it has been modified to reflect the current state of its substance.
Section 13 of the corporate tax code “related Person” of the General communique. examples of the 10% Partnership, vote or dividend requirement in cases where the relationship is formed directly or indirectly through the partnership channel have been amended to reflect the current version of the article.
Arm's length price or the price of the traditional transaction methods can be called comparable price method, resale price method and cost plus methods, the transactional profit methods, called the transactional net margin method and profit split method will be used to identify the most appropriate method for the transaction of any and does not matter the order of precedence between these methods, the general notification has been processed.
6 on the “Advance Pricing Agreement” of the General communique. amendments have been made to reflect the current version of Council of Ministers resolution 2007/12888 on 940 Form 2021 implicit distribution of earnings through transfer pricing.
7 Of The General Communique. the department was changed and detailed explanations were made regarding the new transfer pricing certification obligations stipulated by the decision of the President.
“8 - Penalties” section of the General communique was amended together with the title and explanations were made for the 50% reduced tax penalty applied provided that the certification obligations related to transfer pricing have been fulfilled in full and on time. 359 Of The Tax Procedure Code. it is stated in the article that it is not possible to benefit from the reduced penalty if the acts written in the article (within the scope of tax evasion) cause tax loss.
If the related person abroad distributes the right to use the intangible right purchased by the related person abroad through the expense sharing channel to the group company in Turkey within the scope of the in-Group service, the payment to the related person abroad will also be considered as an intangible right payment.
The Transfer pricing in the annex to the corporate tax return, the Controlled Foreign institution and the implicit Capital form will include “the purchase or sale of goods or services with an annual total net amount of US $ 30,000 or more on the basis of each related person during the relevant accounting period”.
Additional annexes related to new transfer pricing certification obligations have been added to the annex of the General communique.
