ANGOLA
is soon expected to introduce a new transfer pricing regime in its tax system
that would probably come into force in the month of March. The regulations that
the regime proposes shall only cover companies with a turnover above $280
million. Such companies would have to prepare a transfer pricing file to
validate their transactions. Paulo Mendonca, Transfer pricing adviser, has
stated that if the multinationas do not adhere to the requirements, they would
be charged with penalties.The approach will permit the tax man to have complete
view of the relevant transactions by related parties. But since companies have
previously used the residual profit split method in their documents, which is
now being removed, the new regime will act as an added compliance burden.
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