A New Tax Era Begins in Bangladesh
The National Board of Revenue (NBR) of Bangladesh has launched its first Transfer Pricing audit to detect possible tax evasion by multinationals. It is crucial in the country’s tax supervision to demonstrate a strong government commitment to regulate Transfer Pricing practices, especially those that may minimize or avoid taxation.
What Does This Transfer Pricing Audit Entail for Multinationals?
Bangladesh joins the list of countries implementing Transfer Pricing audits. Multinational companies operating in the country are being targeted to verify they comply with local and international tax standards by analyzing inter-company transactions of the same group. This is a significant change in the country’s tax strategy and a call to companies to adjust their practices and comply with current regulations.
Compliance Strategies and Standards
Bangladesh’s Transfer Pricing audit complies with OECD recommendations and the established standards to avoid tax base erosion and profit shifting. Through this strategy, the NBR intends to make the international operations of multinationals transparent and encourage them to be under the Arm’s Length Principle, i.e., inter-company or intra-group transactions carried out under the same conditions as independent companies.
Admonishment Against Tax Risks
For multinationals, this new approach by the Bangladeshi government is a pressing need to review and optimize their Transfer Pricing policies. Supported companies by experts can ensure regulatory compliance and avoid potential penalties or tax adjustments affecting their profitability and reputation in the marketplace.
TPC Group Advice
At TPC Group, we have a specialized Transfer Pricing team to assist you in developing policies according to tax regulations in Bangladesh and other countries. Evaluate your Transfer Pricing practices with us and ensure solid tax compliance.
Contact us today and reduce your international tax risks!
Source: The Business Standard News
