SARS said on Friday it had published draft rule amendments for public comment with the view to facilitating transfer pricing adjustments to provide clarity and certainty for multinational enterprises.
“The rule amendments under the Customs and Excise Act, 1964 will provide clarity and certainty for multinational enterprises on how to account for their transfer pricing adjustments on previous Customs declarations. This will ensure that they are compliant with their Customs obligations.”
Price fluctuations of goods and services delivered by multinationals had a knock-on effect and impact the profits and, as a result, the tax liability of the multinationals, the tax authority said.
“It is then the obligation of the multinational to adjust the transfer pricing payment retrospectively to ensure compliance,” it added.
Sars said the draft amendments had been published on the Sars website for public comment and announced on Sars social media. The Customs community is requested to participate in the process.
Sars Commissioner Edward Kieswetter said: “This is another step to make it easy and simple for taxpayers and traders to comply voluntarily with their obligations.
“Legislation allows the organisation to outline the rules and procedures that promote compliance in unambiguous terms and strengthen the tax and Customs eco-system that affects our stakeholders, nationally and internationally.”
BUSINESS REPORT