New regulations were made on transfer pricing with the “Communiqué on Amendments to the General Communiqué on Disguised Profit Distribution through Transfer Pricing (Serial No: 1) No. 5” published in the Official Gazette No. 32695 dated 17.10.2024.
With the regulation made, subparagraph (a) of the first paragraph of the section titled “7.3.1- Taxpayers and Transactions Included in the Scope” of the General Communiqué on Disguised Profit Distribution through Transfer Pricing (Serial No: 1) and “7.3.2- Taxpayers and Transactions Not Included in the Scope” The phrases “To the Large Taxpayers Tax Office Directorate” in subparagraph (a) of the first paragraph of the section titled “To the Large Taxpayers Tax Office Directorate of the Istanbul Revenue Office” have been changed as “To the Istanbul Revenue Office Large Taxpayers Tax Office Directorate”. The regulation in question is made due to the transformation of the Large Taxpayers Tax Office into the Istanbul Revenue Office Large Taxpayers Tax Office and consists of a name change.
In addition, the first sentence of the ninth paragraph of the section titled “7.4- Country Based Report” of the same Communiqué has been amended as follows and the following example has been added to the same section after “Example 3”. “By members of the covered multinational enterprise group; Whether they are the ultimate main business or a proxy business, which business will report on behalf of the group, and information about the accounting period, every year until the end of the sixth month following the end of the accounting period to be reported, in accordance with the content in Annex-5 and the explanations in the Digital Tax Office. “The notification form for country-based reporting” will be filled out and given electronically via the Digital Tax Office.
“Example 4:
The reporting period of (ABC) A.Ş., resident in Turkey, is 1 May 2023-30 April 2024, and the group’s consolidated income in the special accounting period of 1 May 2022-30 April 2023, which is the accounting period before the reporting period, is 800 million Euros. (The limit set for country-based reporting in Turkey is 750 million Euros.) Accordingly, the final parent company (ABC) A.Ş. must submit the notification form for country-based reporting by the end of the sixth month following the end of the accounting period to be reported. It must be submitted electronically via the Digital Tax Office. Also (ABC) A.Ş. “Country-based reporting for the relevant period must also be made by the end of April 30, 2025.”
With the change made, the notification form for country-based reporting should be notified until the end of the sixth month following the accounting period to be reported, instead of being notified until the end of June following the accounting period to be reported. The change does not create any changes for taxpayers with normal accounting periods, but the problems experienced by taxpayers with special accounting periods are eliminated. The example given in the notification aims to clarify this. In addition, the phrases Internet Tax Office in the Communiqué have been changed to Digital Tax Office.
The regulations entered into force on October 17, 2024, effective from September 1, 2024.
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You may access the full text of the Communiqué from the link below:
https://www.resmigazete.gov.tr/eskiler/2024/10/20241017-4.htm
