JAKARTA. Directorate General of Taxation will require every company, which has specific amount of turnover, to prepare supporting documents to uphold Minister of Finance Regulation on the scheme of transfer pricing. Director of Counseling, Services, and Public Relations at Directorate General of Taxation Hestu Yoga Saksama said, those documents have to be submitted as examination evidence along with master document and local document. The documents include local file, master file, and country by country report (CbCR). According to Yoga, a company, which has special relations with companies abroad, has to prepare CbCR so that tax authority can examine the company’s value of fairness. Yoga continued, the documents can be evidences should a dispute occur. The documents comprise consolidated financial statements of the group, including the statements on how the company allocated its costs in various countries.
Tax authority will prevent transfer pricing
JAKARTA. Directorate General of Taxation will require every company, which has specific amount of turnover, to prepare supporting documents to uphold Minister of Finance Regulation on the scheme of transfer pricing. Director of Counseling, Services, and Public Relations at Directorate General of Taxation Hestu Yoga Saksama said, those documents have to be submitted as examination evidence along with master document and local document. The documents include local file, master file, and country by country report (CbCR). According to Yoga, a company, which has special relations with companies abroad, has to prepare CbCR so that tax authority can examine the company’s value of fairness. Yoga continued, the documents can be evidences should a dispute occur. The documents comprise consolidated financial statements of the group, including the statements on how the company allocated its costs in various countries.