As multinational companies are expanding their business into every corner of the globe, tax authorities are seeking more effective measures to protect their tax revenue. National Board of Revenue (NBR) of Bangladesh introduced transfer pricing regulation in Bangladesh tax laws for the first time through Finance Act 2012 which has become effective from 1 July 2014. Bangladesh transfer pricing regulation targets international transactions between two associated entities, either or both of whom are non-residents. Transfer pricing regulation mostly affects multinational companies or foreign companies having direct or indirect transactions with their subsidiaries, associates or other legal form of entities (e.g. liaison office, branch office, agent, etc.) in Bangladesh.

The compliance requirements under transfer pricing regulations in Bangladesh include submission of TP return in a prescribed form, maintenance of transfer pricing documentation, and obtaining certificate from an Accountant in certain circumstances.  If a company fails to comply with the requirement and regulation of Transfer Pricing, a range of financial penalties will be applicable depending on the nature and extent of the non-compliance.

KPMG’s Global Transfer Pricing Services (GTPS) professionals help companies effectively and efficiently manage their transfer pricing through the following services: planning compliance and documentation, implementation and controversy. KPMG in Bangladesh has a dedicated team of experienced professionals, including accountants, tax practitioners, specialists, benchmarking experts and financial analysts, who can offer essential local knowledge within a global framework. With the help of GTPS, companies can be assisted in efficient planning of transactions, capital structure and investment arrangements, preparation of annual transfer pricing return and documentation, and responding to challenges from the tax authorities.

 

Our Strengths

• Experienced Chartered Accountants, tax practitioners, benchmarking specialists to assist in transfer pricing planning and compliance.
• Dedicated access to reputed transfer pricing databases to perform high quality benchmark analysis.
• Large client base with diverse industry exposure.

 

How we can help

• Transfer Pricing Planning: Assist in economically supportable transfer pricing planning ahead of international transactions, capital restructuring, and investing. Reviewing draft agreements between associated enterprises to identify and advise on potential transfer pricing issues.
• Preparation of Transfer Pricing Documentation/ Study Report: Assist with transfer pricing analysis and documentation/ study report of international transactions between associated enterprises for consistency with the arm’s-length principle for transfer pricing purpose.
• Preparation of Transfer Pricing Return: Assist in identification of international transactions and preparation of transfer pricing return in prescribed format. 
• Dispute Resolution: Assist in resolving transfer pricing disputes through various services at various level of the competent authority.