Annex I to Chapter V
Transfer Pricing Documentation – Master file
The following information should be included in the master file:
- Chart illustrating the MNE’s legal and ownership structure and geographical location of operating entities.
Description of MNE’s business(es)
- General written description of the MNE’s business including:
– Important drivers of business profit;
– A description of the supply chain for the group’s five largest products and/or service offerings by turnover plus any other products and/or services amounting to more than 5% of group turnover. The required description could take the form of a chart or a diagram;
– A list and brief description of important service arrangements between members of the MNE group, other than research and development (R&D) services, including a description of the capabilities of the principal locations providing important services and transfer pricing policies for allocating services costs and determining prices to be paid for intra-group services;
– A description of the main geographic markets for the group’s products and services that are referred to in the second bullet point above;
– A brief written functional analysis describing the principal contributions to value creation by individual entities within the group, i.e. key functions performed, important risks assumed, and important assets used;
– A description of important business restructuring transactions, acquisitions and divestitures occurring during the fiscal year.
MNE’s intangibles (as defined in Chapter VI of these Guidelines)
- A general description of the MNE’s overall strategy for the development, ownership and exploitation of intangibles, including location of principal R&D facilities and location of R&D management.
- A list of intangibles or groups of intangibles of the MNE group that are important for transfer pricing purposes and which entities legally own them.
- A list of important agreements among identified associated enterprises related to intangibles, including cost contribution arrangements, principal research service agreements and licence agreements.
- A general description of the group’s transfer pricing policies related to R&D and intangibles.
- A general description of any important transfers of interests in intangibles among associated enterprises during the fiscal year concerned, including the entities, countries, and compensation involved.
MNE’s intercompany financial activities
- A general description of how the group is financed, including important financing arrangements with unrelated lenders.
- The identification of any members of the MNE group that provide a central financing function for the group, including the country under whose laws the entity is organised and the place of effective management of such entities.
- A general description of the MNE’s general transfer pricing policies related to financing arrangements between associated enterprises.
MNE’s financial and tax positions
- The MNE’s annual consolidated financial statement for the fiscal year concerned if otherwise prepared for financial reporting, regulatory, internal management, tax or other purposes.
- A list and brief description of the MNE group’s existing unilateral advance pricing agreements (APAs) and other tax rulings relating to the allocation of income among countries.