BIR Form 1709: Information Return on Related Party Transactions (RPTs) – The Unique but Harsh One!
BIR Form 1709 requires domestic and foreign related party transactions to be documented as mandated under RR 19-2020. The Transfer Pricing Documentation (TPD) is vital in the recent drive by the Tax Bureau mandating full disclosure of all controlled transactions which have impact to the taxable income of the country’s registered entities. This transfer pricing rules made its mark last July 2020 which covered taxable entities for the fiscal year ended 31 March 2020 and succeeding fiscal/ calendar year ending reports.
Indulge in a few Q’s of the recent transfer pricing rules in pursuant to RMC No. 76-2020:
> Are all taxpayers with RPTs really required to attach a TPD?
> What is the required TPD?
> Is it required that the TPD be updated yearly? Does BIR expect to have an annual/ updated TP study?
> If the parent company has a TP documentation already covering the transactions with subsidiaries, can the subsidiaries use that for their purpose? Can we attach a TPD of the other transacting related party or even the master file of the group?
These and more interesting and unique finds on this RR & RMC will be discussed in detail by our UHY Transfer Pricing experts this Coming October 23, 2020 live via zoom!
Click on the link below to join us on this exciting event.
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