Australia: Simplified Transfer Pricing Rules
The Australian Tax Office has provided updates to the record keeping options under simplified transfer pricing rules. The key changes include but are not limited to:
- Consolidation of management and administration option into the low value adding intra-group services options;
- Increased turnover threshold from AUD 25 million to 50 million;
- Introduction of a new combined threshold for royalties, license fees or fees from research and development services;
- Interest rate capped at 3.76% in the 2019 income year for both inbound and outbound loans.
The changes apply to income years starting on or after July 1, 2018.