Source:
- Taxation (Transfer Pricing Documentation) Regulations 2017 (Gazette Notice No. 36 of 3 July 2017)
Summary of local requirements
Strict Format: Not specified
Language: English
To download the legislation in the original language, go to:
Documentation
| (a) | An overview of the taxpayer’s business operations (history, recent evolution and general overview of the relevant markets of reference) and organizational chart (details of business units or departments and organizational structure) |
| (b) | A description of the corporate organizational structure of the group that the taxpayer is a member (including details of all group members, their legal form, and their shareholding percentages) and the group’s operational structure (including a general description of the role that each of the group members carries out with respect to the group's activities, as relevant to the controlled transaction) |
| (c) | A description of the controlled transaction(s) including analysis of the comparability factors |
| (d) | Details of the functions undertaken by the connected parties in relation to the controlled transaction, which shall include details of assets in relation to the controlled transaction as well as risk assumed by each party |
| (e) | An explanation of the selection of the most appropriate transfer pricing method, and, where relevant, the selection of tested party and the financial indicator |
| (f) | Financial statements for the parties to the controlled transaction including where the tested party has been selected as a party outside the country |
| (g) |
A comparability analysis, including:
|
| (h) | Details of any industrial analysis, economic analysis, budgets, or projections relied on |
| (i) | Details of any relevant Advance Pricing Agreements or similar arrangements in other countries that are applicable to the controlled transactions |
| (j) | A conclusion as to consistency of the conditions of the controlled transactions with the arm's length principle, including details of any adjustments made to ensure compliance |
| (k) | Any other documentation or information that is necessary for determination of the taxpayer's compliance with the arm's length principle with respect to the controlled transactions |
Recommendations for Documentation:
Regarding content requirements:
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Financial Statements for All Parties to the Controlled Transaction:
Malawi requires financial statements not only for the tested party but for all parties to the controlled transaction — including where the tested party is located outside Malawi. This goes beyond the standard OECD requirement, which focuses on the local entity's financials.
We recommend uploading the financial statements of all parties to each controlled transaction in the Financial Accounts tab of the Legal Entities section for each relevant entity, and ensuring the tested party's financial statements are attached in the Economic Analysis section where the tested party is a foreign entity.
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Industry Analysis, Economic Analysis, Budgets, and Projections:
Malawi explicitly requires documentation of any industry analysis, economic analysis, budgets, or projections relied on in preparing the TP analysis.
We recommend documenting the industry and economic analysis in the Business Description subsection of the Entity Description tab, and saving any supporting budgets, projections, and economic studies in the Resources section for attachment to the documentation.
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APAs in Other Countries:
Malawi requires disclosure of any relevant Advance Pricing Agreements or similar arrangements in other countries that are applicable to the controlled transactions. Note that Malawi does not operate its own APA programme.
We recommend documenting any relevant foreign APAs or rulings applicable to the controlled transactions in the Rulings section.
Regarding format/structural requirements:
Malawi does not prescribe a strict standardised template for the documentation.
We recommend preparing the documentation using TPDoc's standard Local File functionality, ensuring it is maintained contemporaneously and available for submission to the Malawi Revenue Authority (MRA) upon request.