Source:
Summary on local requirements
Strict Format: Not specified
Language: English
To download the legislation in the original language, go to:
Master File
The Master File must be submitted electronically and must contain the following information:
| (a) | The organizational structure of the group including a chart illustrating the legal and ownership structure of the group and the geographical location of operating entities |
| (b) | A description of the business of the group including a description of: |
| (i) | Important drivers of business profit |
| (ii) | The supply chain of at least five of the largest products or service offerings of the group based on turnover and any other products or services amounting to more than 5% of the turnover of the group |
| (iii) | Important service arrangements between members of the group, other than research and development 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 |
| (iv) | The main geographic markets for the products and services of the group that are referred to in (ii) above |
| (v) | The functional analysis describing the principal contributions to value creation including the key functions performed, important risks assumed and important assets used by each entity within the group |
| (vi) | The important business restructuring arrangements, acquisitions and divestitures occurring during the fiscal year |
| (c) | The intangibles of the group including a description of: |
| (i) |
The overall strategy of the group for the development, ownership and exploitation of intangibles, including location of principal research and development facilities and location of research and development management |
| (ii) | The intangibles or groups of intangibles of the group that are important for transfer pricing purposes and the entities that own the intangibles |
| (iii) | The agreements among associates relating to the intangibles, including cost contribution agreements, principal research service agreements and licence agreements |
| (iv) | The transfer pricing policies of the group related to research and development, and intangibles |
| (v) | A general description of any important transfers of interest in intangibles among associates during the fiscal year concerned, including the entities, countries and compensation involved |
| (d) | The financial activities of the group including a description of: |
| (i) | How the group is financed, including important financing arrangements with unrelated lenders |
| (ii) | The members within the group that provide a central financing function for the group, including the country under whose laws the entity is organized and the place of effective management of the entity |
| (iii) | The transfer pricing policies relating to financing arrangements between associates |
| (e) | The financial and tax positions of the group including a description of: |
| (i) | The audited consolidated financial statement of the group for the fiscal year concerned; |
| (ii) | The existing unilateral advance pricing agreements of the group and other tax rulings relating to the allocation of income among countries |
Recommendations for Master File:
Regarding supply chains:
The supply chain of at least five of the largest products or service offerings of the group based on turnover and any other products or services amounting to more than 5% of the turnover of the group.
We recommend, that you include this information in the Supply Chain Section.
Regarding value creation:
The functional analysis describing the principal contributions to value creation including the key functions performed, important risks assumed and important assets used by each entity within the group.
We recommend, that you include a separate document with the value creation analysis that you can save in the Resources Section and attach to the Master File. Alternatively, you can also use Aibidia's Value Creation Solution with interactive analytics.
Local File
The Local File must be submitted electronically and must contain the following information:
| (a) | The organizational structure of the entity in Ghana, including a description of: |
| (i) |
The management structure of the entity, an organizational chart of the entity, and a description of the persons to whom local management reports and the countries in which such persons maintain their principal offices |
| (ii) | The business and business strategy pursued by the entity, including an indication whether the entity has been involved in or affected by business restructurings or intangibles transfers in the present or immediately preceding year and an explanation of those aspects of such transactions affecting the local entity |
| (iii) | Key competitors of the entity |
| (b) | The controlled arrangements of the entity in Ghana, including details of: |
| (i) | The substantial controlled arrangements including the procurement of goods, services, loans, financial and performance guarantees, licences of intangibles and the context in which the arrangements take place |
| (ii) | The amount of intra-group payments and receipts for each category of controlled arrangements involving the local entity grouped by the tax jurisdiction of the foreign payer or recipient |
| (iii) | The associated entities involved in each category of controlled arrangements, and the relationship among the associated entities |
| (iv) | The comparability and functional analysis of the person and relevant associates with respect to each documented category of controlled arrangements, including any changes compared to prior years |
| (v) | The most appropriate transfer pricing method with regard to the category of arrangements and the reasons for selecting that method |
| (vi) |
The person selected as the tested party and an explanation of the reasons for the selection |
| (vii) | The important assumptions made in applying the transfer pricing methodology |
| (viii) | The selected comparable uncontrolled arrangements, internal or external if any, and the information on relevant financial indicators for independent entities relied on in the transfer pricing analysis, including a description of the comparable search methodology and the source of the information |
| (ix) | Any comparability adjustments performed, and an indication of whether adjustments have been made to the results of the tested party, the comparable uncontrolled transactions or both |
| (x) | Any reasons for concluding that the relevant arrangements were priced using the arm's length standard based on the application of the selected transfer pricing method |
| (xi) | The financial information used in applying the transfer pricing methodology |
| (xii) |
An existing unilateral, bilateral or multilateral advanced pricing arrangements and other rulings to which the GRA (i.e. Ghana Revenue Authority) is not a party and which are related to controlled arrangements described above |
| (c) | The financial activities of the entity in Ghana including details of: |
| (i) |
The audited financial statement of the entity for the fiscal year concerned |
| (ii) | The allocation schedules showing how the financial data used in applying the transfer pricing method may be tied to the annual financial statement |
| (iii) | The schedules of relevant financial data for comparables used in the analysis and the sources from which that data was obtained |