The Nordic Chamber of Commerce and Industry in Bangladesh (NCCI) organized a Workshop on Transfer Pricing Regulations in Bangladesh on 08th December 2014 at LM Ericsson Bangladesh in Gulshan, Dhaka. The workshop will be facilitated by Mr. Mehedi Hasan, Partner at Rahman Rahman Huq (KPMG International).
The purpose of the workshop was to provide a brief overview of the the transfer pricing regulations in Bangladesh and the level of documentation that is required to be maintained by any organization involved in international transactions.
The Transfer Pricing (TP) rule was issued by the National Board of Revenue (NBR) under a provision incorporated in Finance Act 2012 for foreign companies to furnish details of their international transactions with the tax returns. The TP Regulations will be effective from 01 July 2014. The concept of the transfer pricing regulation involves as to what can be defined as International transactions, Associated enterprises and principles revolving around the concept of arm’s length price. The participants were introduced to the different aspects of international transactions, definition of associated enterprises and various methodologies to compute the Arms’ Length Price.
The transfer pricing regulations are intended to ensure transparency, disclosure and documentation of economic activities by the Multinational Enterprises as well as to ensure fair share of tax revenue to respective jurisdictions and to prevent shifting of profits outside Bangladesh by manipulating prices.
The workshop featured a discussion session where the participants exchanged views on transfer pricing. The program was attended by representatives of A-Tex International, Arla Foods, Bestseller, Bikroy.com Limited, DSV Air & Sea, Graphic Associates International, Hifab International, Maersk and Ikea.