Zambia strengthens its transfer pricing rules
African tax administrations report that transfer pricing represents one of the highest risks to their tax bases. According to the United Nations Economic Commission for Africa the continent is losing approximately USD50 billion a year in illicit financial flows. Abusive transfer pricing practices is one of the primary sources of these losses.
Having effective transfer pricing legislation is a key element in African countries’ fight to combat abusive transfer pricing practices and is also important in providing taxpayers with greater tax certainty and encouraging voluntary compliance.
With the assistance of the ATAF International Taxation team, Zambia has now released new transfer pricing regulations to supplement its existing legislation and regulations. The new regulations provide rules on a wide range of transfer pricing issues such as the use of the most appropriate transfer pricing method and specifying the documentation taxpayers must maintain to demonstrate their transfer pricing complies with the law.
If you are an ATAF member and your country faces tax loss risks from ineffective transfer pricing rules, our International Taxation team is here to help you introduce new effective rules based on our Suggested Approach to Drafting Transfer Pricing Legislation. Please feel free to contact the ATAF team on +27 12 451 8800 or info@ataftax.org
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