Transfer pricing in Ghana at a glance
|Are there specific transfer pricing regulations?||Yes|
|Submission deadline upon request||N/A|
|Annual update required||Yes|
|Official language requirements||English|
|Potential impact of penalties||N/A|
Ghanaian tax law
Rules for transfer pricing in Ghana are based upon:
- Transfer pricing regulations 2012 (L.I. 2188)
Ghana is not an OECD member but Ghana’s rules for transfer pricing are in line with the OECD Transfer Pricing Guidelines.
Accepted methods are:
- the comparable uncontrolled price method
- the resale price method
- the cost plus method
- the profit split method
- the transactional net margin method
Priority of methods
Rules for transfer pricing in Ghana state that a taxpayers should use the most appropriate method.
Information that should be included in the documentation:
- The transfer pricing method which includes information on any adjustment made; any assumption made in applying that method; justification for use of the method; the comparables chosen and the criteria for choosing those comparables; the comparability analysis of the associated party transactions
- The calculations made by the person, with the price adjustment factors considered for purposes of achieving the comparability
- The arm’s length range determined by the taxpayer and the reasons in support of that determination and use of the range
- The taxpayer’s global organizational structure, location and ownership linkages amongst associated persons
- A description of the nature of the business in which the relevant transaction took place, and the property used
- Details of the intercompany transaction, including: contracts detailing the terms; segmented financial accounts for the transactions and the assumptions made to obtain the segmented information
- The policies applied and information analysis the taxpayer relied on to determine and ensure that the transaction is at an arm’ s length
- The person’ s identity and the relation between that person and other persons in the controlled relationship
- Details regarding the principal business activities of each person in the group; and the business relationship, services provided, goods sold and intangible used in the group’ s consolidated financial statements
- Information about each associated party; the line of business; industry dynamics; the market, regulatory and economic conditions; the functions, risks, assets used and financial statements
Rules for transfer pricing in Ghana prescribe that all documentation should be submitted in English.
Requirements to prepare documentation annually
In Ghana no specific deadline is in place. However, transfer pricing documentation is expected to be prepared contemporaneously.
Submission deadline upon request by tax authorities
Advance Pricing Agreements
Rules for transfer pricing in Ghana do not provide for an option to obtain an Advance Pricing Agreement.
In Ghana no specific transfer pricing penalties are in place, meaning that ordinary tax penalties apply.