Revenue updated the Tax and Duty Manual Part 35A-01-01 – Transfer Pricing – to provide guidance on the operation of transfer pricing rules in Part 35A TCA 1997, as updated by Finance Act 2019. Part 35A TCA 1997, as substituted by Finance Act 2019, applies for chargeable periods commencing on or after 1 January 2020 and, in relation to the computation of certain capital allowances where the related capital expenditure is incurred on or after 1 January 2020.

Finance Act 2020 provided for an amendment to the definition of ‘relevant person’ in section 835A and for the substitution of a revised section 835E. Section 15 of Finance Act 2020 is subject to a Ministerial commencement order and has not yet come into effect. The manual notes the amendments provided for in Finance Act 2020, however, specific guidance on these provisions are not included.

The CCAB-I wrote to the Minister for Finance following the publication of Finance Bill 2020 to highlight members concerns on the revised transfer pricing measures included in the Bill. A Report stage amendment provided that section 15 of the Bill would be subject to a Ministerial commencement order, instead of applying from 1 January 2021.

The Tax and Duty Manual Part 35A-01-02 – Transfer Pricing Documentation Obligations – has been updated to reflect that it does not apply for chargeable periods commencing on or after 1 January 2020. For chargeable periods commencing on or after 1 January 2020, the documentation requirements are outlined in Tax and Duty Manual Part 35A-01-01.

See eBrief No. 037/21 for further details.