The transfer pricing information return tax form has been released to provide 2013 information. The form is to be completed in French with a due date of 20 November 2014. A reference to the form is attached:
Best Practice observation: As more countries initiate transfer pricing disclosure forms, including the types of transfer pricing methodologies being used, it is imperative to align these disclosures with the annual transfer pricing documentation. Accordingly, there should be clear communication with the Business re: advice to properly file such disclosures.
In concert with the global emphasis on transfer pricing, Nigeria’s Federal Inland Revenue Service (FIRS) has issued new transfer pricing (TP) forms to be filed with the annual corporate income tax returns for 2013. Additionally, a new Transfer Pricing Division has been implemented following Best Practices by other tax administrations.
A Transfer Pricing Declaration form and Transfer Pricing Disclosure form are released to implement the TP regulations issued in 2012. The Transfer Pricing Declaration form includes information on the company’s directors and parent company, whereas the Transfer Pricing Disclosure form requests information about the company’s performance in relation to the group, in addition to disclosure of zero consideration goods, services, or intercompany loans.
The new disclosures highlight the trend for increased disclosures, for which there should be Best Practices implemented to ensure timely compliance and global consistency of tax reporting positions.
A KPMG summary is included as an insightful reference.