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Published on January 17, 2017
The South African Revenue Service (SARS) has published additional transfer pricing documentation requirements on 28 October 2016. The additional record keeping requirements apply to multinational companies with cross -border connected party transactions exceeding R100 million for the tax year. Should the R100 million threshold be met, the additional record keeping requirements are applicable to all transactions exceeding R5 million. The notice applies in respect of years of assessment commencing on or after 1 October 2016.
o) Copies of existing unilateral, bilateral and multilateral advance pricing agreements and other tax rulings to which SARS is not a party and which are related to the potentially affected transactions.
It is clear from the above that SARS has already started with the implementation of the BEPS recommendations both by the OECD/G20 and the Davis-Committee. Therefore, taxpayers must prepare sound and reliable transfer pricing documentation in order to fulfill the ever increasing requirements for transfer pricing.
Klaus Bornebusch
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Roger Bramwell