Seychelles: DRAFT Transfer Pricing rules – comments till 15 April 2015

http://www.src.gov.sc/resources/Rulings/2015/Ruling-2015-3.pdf

Section 54 of the Business TaxCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The... Act 2009 states as follows:
54.(1) The Revenue Commissioner may, in respect of —
(a) a transaction between businesses carried on by persons who are associates;
or
(b) a transaction between businesses carried on by the same person,
distribute, apportion, or allocate income or gain and expenses between the businesses as is
necessary to reflect the outcome that would have arisen in a transaction between independent
persons dealing with each other at arm’s length.
(2) In applying subsection (1), the Revenue Commissioner may be guided by international
standards, case law, and guidelines on transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... issued by international organization
concerned with taxation.

Applicable transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... methods
10. Even though a taxpayer is free to choose its own transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... method (refer paragraph 23 below),
the Revenue Commissioner assess the following transfer pricingTransfer pricing is a fundamental concept in international taxation that defines the pricing methods and rules applied to transactions between related entities within a multinational enterprise (MNE). In the context of tax regulations, it governs how prices for goods, services, or intangibles (such as intellectual property) are set when these items are exchanged between different branches, subsidiaries, or affiliates of... methods (in preferential order), as
being largely appropriate for use:
a) the comparable uncontrolled price methodThe Comparable Uncontrolled Price (CUP) Method is a transfer pricing approach that assesses whether the price charged in an intercompany transaction between related entities is consistent with the arm’s length principle. The arm’s length principle, a fundamental concept in transfer pricing, requires that the conditions of a transaction between associated enterprises be equivalent to those which would have been agreed...
b) the resale price method
c) the cost plus method
d) the transactional profit split method or,
e) the transaction net margin method