TRANSFER PRICING DOCUMENTATION
FRCS wishes to advise all Fijian companies and businesses including parent, branches, subsidiaries, and permanent establishments that are members of a Multinational Enterprise (MNE) economic group or are businesses that engage in cross-border transactions with related overseas companies or businesses, that it is a requirement to maintain Transfer Pricing documentation. Regulation 9 of the Income Tax (Transfer Pricing) Regulations 2012 states:
- A person must record, in writing, sufficient information and analysis to verify that its controlled transactions are consistent with the arm’s length principle.
- The documentation referred to in sub-regulation (1) for transactions undertaken in a tax year must be in place prior to the due date for filing the income tax return for that year.
- The Chief Executive Officer may, by notice, specify the items of documentation that a person is required to keep for the purposes of this regulation.
- A person who fails to comply with this regulation commits an offense and is liable upon conviction to a fine, of not less than $100,000.
The Transfer Pricing documentation should be prepared in accordance with the Organization for Economic Cooperation and Development (OECD) Guidelines, Fiji Income Tax legislation, and the FRCS Transfer Pricing Guidelines.
FRCS is advising all Fijian companies that are members of MNEs or Fijian businesses that engage in cross-border transactions that it is a statutory requirement to prepare and has available their Transfer Pricing documentation at the time of lodgment of their income tax return. We expect a high standard of compliance from MNEs. Regulation 9(4) as stated above may be applied if the Transfer Pricing documentation is not available upon request by the FRCS.
The Transfer Pricing Regulations and Transfer Pricing Guidelines can be accessed on these links https://www.frcs.org.fj/wp-content/uploads/2020/01/Regulations-2012.pdf and https://www.frcs.org.fj/wp-content/uploads/2023/01/Transfer-Pricing-Guidelines.pdf
Should you require further assistance or clarification, please email the Transfer Pricing Team: email@example.com.