Here are four (4) facts on the latest public notice on Transfer Pricing (TP) regulations, 2018 issued by the Federal Inland Revenue Service on October 3, 2018.
Is this the first TP regulation in Nigeria?
Answer: No. The revised Income Tax (Transfer Pricing) Regulations (TP Regulations), 2018 replaces the Income Tax (Transfer Pricing) Regulations, 2012.
What does it relate to?
Answer: TP Regulations, 2018, provides the legal basis for applying arm’s length principle to transactions between connected persons.
What is the effective date of TP regulations 2018?
Answer: The commencement date of the TP Regulations is March 12, 2018.
When is the due date for complying?
Answer: FIRS has allowed taxpayers until December 31, 2018 to discharge all pending obligations such as file TP declarations, disclose controlled transactions, submit TP Documentation; otherwise full penalties under the Regulations would apply.