O'Reilly logo

Asia-Pacific Transfer Pricing Handbook by Margaret Kent, Robert Feinschreiber

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter Twenty-Nine

Sri Lanka Transfer Pricing

The Sri Lanka ministry of Finance promulgated transfer pricing regulations on April 22, 2008, through the issuance of Gazette Order 1546/10. The Gazette Order does not specifically address the effective date of these transfer pricing regulations. Sri Lanka introduced transfer pricing legislation two years earlier, in April 2006. The 2008 transfer pricing regulations implement that statute.

Sri Lanka’s transfer pricing regulations are quite brief but they include six annexes that address transfer pricing concerns:

Annex 1: Test of Control—Associated Undertaking
Annex 2: Arm’s Length Pricing Methodologies
Annex 3: Appropriate Pricing Methodology—Factors to Consider
Annex 4: Comparability of an Uncontrolled Transaction—Factors to Consider
Annex 5: Prescribed Documentation
Annex 6: Suggested Supporting Documents

ASSOCIATED UNDERTAKINGS

Sri Lanka’s transfer pricing provisions apply to transactions between “associated undertakings,” which, in essence, are transactions between related parties. The Sri Lanka law treats such an “undertaking” to be an associate of the other party if the first undertaking party participates in the control of the second undertaking party. This undertaking process can be direct or indirect, or can occur through one or more intermediaries. The associated undertaking process necessitates that the first party exercises control over the second party in such a manner or to such an extent that the regulations prescribe. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required