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Transfer Pricing Documentation

Taxpayers are obliged to prepare, keep and to present documents to prove their transactions with related parties satisfying the arm’s length principle and the details of their transfer price calculations.

All corporate income tax payers in Turkey have to fill a detailed “transfer pricing declaration” form and attach the form to the corporate income tax return, if only there is any transaction related with transfer pricing and/or thin capital and/or participated foreign company abroad.

Taxpayers have to consider below issues while preparing transfer pricing documents:

BEPS Action 13

Transfer pricing and customs valuations

Transfer pricing aspects of intangibles

Transfer pricing of financial transactions

Transfer pricing and business restructuring

Attribution of profit to permanent establishment

Impact of digitalisation on related person and profit allocation rules.

TP documents and reports are asked by the tax administration or tax scrutiny authorities from time to time

Transfer Pricing Report is delivered upon conducting our detailed researches, analysis, calculations and services of assessment, planning and management of transfer pricing risks, to design, implement and document of transfer pricing systems to disclosure on timely.

Individual or corporate income taxpayers have to prepare a transfer pricing report in the form of;

I. General

  • Info on organisational chart, registrations, business descriptions
  • Activity fields
  • Functions realised
  • Risks
  • Assets
  • Economic status and conditions
  • Market conditions
  • Business strategies

II. Related Parties

  • Info on organisational chart, registrations, business descriptions
  • Activity fields
  • Economic status
  • Market status and conditions
  • Rules and regulations
  • Business strategies
  • Risks
  • Assets

III. Transactions Among Related Parties

  • Volume of all transactions among related parties and unrelated parties, price lists, production costs, all business contracts, financial statements, accounting standards and methods, intangibles, justification of transfer pricing method and application etc.

IV. Transfer Pricing Analysis

  • Details of functional and benchmarking analysis.
  • Internal/external comparables and comparability
  • Benchmarking criteria
  • Details of adjustments
  • Comparison and elimination of transfer pricing methods
  • Details of the best transfer pricing method used and transfer price applied, such as calculations and statistical method to determine transfer price and/or profit margin and certification, arm’s length price range calculations.

V. Outcome

  • A summary of the report


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.



More information please contact with one of our partners.