Guidance to help multinational enterprises navigate complex transfer pricing regulations in Ghana

Global Organizations operate in an environment of unparalleled complexity. The rising volume and variety of intercompany transactions and transfer pricing (“TP”) regulations, accompanied by increased enforcement efforts worldwide have made transfer pricing a major risk management issue for global businesses. In Ghana, both cross-border and in-country arrangements and transactions are required to be at arm’s length between parties to transactions concluded among associates or related parties.

The law on TP - The Income Tax Act, 2015 (Act 896), the Transfer Pricing Regulations, 2012 (L.I. 2181) and Practice Notes on the Transfer Pricing Regulations 2012, L.I 2188 govern transfer pricing in Ghana

How can we Help you?

TP risks and opportunities review

1. Establishing whether and where any transfer pricing audit exposure exists. This entails:

• a. Conducting a review of your existing documentation and inter-company agreements.
• b. Analyzing and identifying opportunities to reduce tax and penalty exposure; and
• c. Recommending “best practice” policies for your related-company transactions.

TP documentation support

2. Prepare appropriate TP documentation, or review TP documentation prepared by you, including:

• a. Preparing/Updating economic and business analyses.
• b. Conducting functional analysis interviews and performing functional analyses; and
• c. Concluding on entities’ characterization and on the most appropriate TP methodology

3. Conduct benchmarking studies, including:

• a. Assisting with benchmarking pricing levels, where third party comparable data is unavailable, to support pricing.
• b. Conducting searches to find companies undertaking similar transactions in similar industries and in similar areas of the world, utilizing information of independent companies on appropriate benchmarking databases; and
• c. Collating results from searches to give evidence of an arm’s-length range of results.

4. Update existing TP documentation:

• a. Updating your existing TP policies and ensuring they are in line with Ghana TP regulations

TP compliance support

• b. Prepare annual TP returns on your behalf.
• c. Review annual TP returns prepared by you.
• d. Respond to GRA queries on the filed TP returns

At KKGO, our transfer pricing team provides expert guidance to help multinational enterprises navigate complex transfer pricing regulations in Ghana, ensuring compliance with the Income Tax Act, 2015 (Act 896) and the Transfer Pricing Regulations, 2012 (L.I. 2181).