FM Consulting International

Transfer Pricing in Bangladesh

Transfer pricing, by definition is the setting of the price for goods and services sold between controlled legal entities within an enter-prise. This system is accepted globally. Merely this process isn’t about discouraging intercompany/ related party transactions, rather to ensure that all the transactions are occurring at a fair price. Over 70 countries have adopted TP rules recently. In Bangladesh, this phe-nomenon is been adopted very recently and is an increasing concern for MNC’s in this country. An entity has to keep records of following documents to face any kind of situation – i. Ownership Profile ii. Business Profile iii. Brief business profiles of each of the member of the group iv. Information on the business relationship v. Consolidated financial statement of the group vi. Financial Statements of the assesse enterprise

vii. Information on economic and market analysis, forecast and Budgets

viii. Detail on all transactions with associated enterprises ix. Contract copies, and other relevant documents

According to current laws of Bangladesh, Return from an accountant is to be furnished before Income tax authority which includes examination of related papers and activities, papers and documentation procedures are compatible with Income Tax Ordinance 1984. Condition for furnishing obligatory Transfer Pricing return is applicable for anyone who engages into an international transaction of any kind. In addition to this, two different reports including “Statement of international transaction which includes expense and revenue details of an assesse and another report namely “Statement of Interest bearing loans, advances and investments” including balance figures of local loans and advances at year end. 

There are provisions for penalty in case of not maintaining records or not submitting Transfer Pricing Return. Penalties are such as: • Maximum 1% of the value of each international transaction for

not maintaining accounting records • DCT may impose a penalty of sum not exceeding to 3 lac when

an assesse or person for failure to furnish Transfer Pricing return mentioned earlier.

Our legal and finance department consist expertise from throughout the world, and we intend to maintain that standard. The harmony between these two departments shall help you to ensure absolute package of legal and financial business solution in Bangladesh. We are just the mere reflection of your needs, ensuring your interest in every possible way.FM Consulting International serves the best Tax Lawyer services in Bangladesh. We also provide the cost effective Business Consulting in Bangladesh. Our Dedicated high skilled team is very experienced on Tax Planning consultant in Bangladesh. Our major services are all company matters including Company Incorporation in Bangladesh or Company Formation in Bangladesh, Tax Planning Lawyer, Audit & Accounting services, VAT consultant in Bangladesh.

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