A Brief on Amendment of Transfer Pricing Legislation in Turkey

The Turkish Ministry of Treasury and Finance announced the Transfer Pricing Communiqué No. 4 as of 1 September 2020.

The Communiqué and its appendices identical and consistent with OECD rules, BEPS (Action 13) and three fold documentation requirements:

Master File for only local entities whose assets and net sales of previous accounting period are TL 500 million and over: Deadline is end of following fiscal year. Deadline for the year 2019 master file is 31 December 2020.

Local File (annual local report) requirement for only related parties involved in international intercompany transactions: Deadline is the same as CIT return due date.

Country by Country Reporting (CbCR) requirement for consolidated group revenue of EUR 750 million and over in the previous accounting period. Deadline is end of following fiscal year. Deadline  for the year 2019 CbCR is 31 December 2020.

MNEs required to CbCR filing have to notify the Turkish CA through a prior CbCR notification form in electronic format. The form consists of general information on CbCR.

CbCR prior-notification deadline is the end of June following the end of each fiscal year.  CbCR prior-notification deadline for the year 2019 is 30 October 2020. An extension maybe asked for.

Related parties with a limit exceeding TL 30.000 for each purchase or sale of goods or services within the year willl be included in the Annual Transfer Pricing Form attached to the Corporate Income Tax Return.

(B)APA period maybe set as five years.