Report from our correspondent Gershem T. Pasi, Revenue and Business Consultant, Zimbabwe
On 10 May 2019, the Minister of Finance and Economic Development issued Income Tax (Transfer Pricing Documentation) Regulations 2019 (the regulations) by Statutory Instrument 109 of 2019.
The regulations deal with matters relating to transfer pricing and provide the regulatory framework for transfer pricing documentation which may be called for by the Revenue Authority in its endeavour to establish that the transaction in question was consistent with the arm’s length principle.
The documentation to be submitted, which must be contemporaneous, is detailed in the regulations and includes:
The documentation must be submitted in the English language.
Requested documentation must be submitted to the Commissioner of the Revenue Authority within 7 days from the date that the written request was issued by the Commissioner.
The Commissioner retains the power to request information in addition to that specified in the regulations.
The regulations became effective on 10 May 2019.