With 2151 numbered Decision on Hidden Income Distribution by Transfer Pricing, there have been amendments made in the General Communique Regarding Hidden Income Distribution by Transfer Pricing published on the Official Gazette No. 31231, dated 01.09.2020.
Amendments are as follows.
- In order to be deemed to be within the scope of hidden income distribution, situations where a related person bond is formed through partnership, it is required to have at least 10% partnership, voting or dividend right,
- The term of advance pricing agreement is to be a maximum of 5 years,
- In cases of renewing advance pricing agreement is required, an application shall be made at least 6 months prior to agreement’s expiration date,
- Changing the expression "transaction-based profit methods" into "transactional profit methods",
- With the precondition of fulfilling documentation liabilities within the scope of Transfer Pricing, loss of tax penalty will be implemented with 50% discount for the tax loss occurred due to hidden income distribution,
- Preparation of general report, annual transfer report and country-specific report,