Transfer Pricing

Transfer price refers to the pricing at which goods or services are transferred between independent parties.

• True

• False

1^{st statement} When short period AITRs are required by law or existing issuances to be filed the RPT Form shall still be accomplished regardless of the reason for filing the said short period return.

2^{nd statement} However, compliance herewith shall only be mandatory for short period returns filed in 2021 and preceding years.

• True : True

• True : False

• False : True

• False : False

The following are Transfer Pricing Methods, except

• Cost Price Method

• Profit Split Method

• Resale Price Method

• Comparable Uncontrolled Price Method

The following are required to file and submit the RPT Form, together with the Annual Income Tax Return (AITR), except:

• Large Taxpayers

• Taxpayers enjoying tax incentives

• Taxpayers reporting net operating income for the current taxable year and the immediately preceding two (2) consecutive taxable years

• A related party which has transactions with Large Taxpayers

What do we have to attach when filing the RPT Form?

• Withholding tax returns and the corresponding proof of payment of taxes withheld and remitted to the BIR

• Proof of payment of foreign taxes or ruling duly issued by the foreign tax authority where the other party is a resident

• Certified true copy of Advance Pricing Agreement

• None of the above

The preparation and submission of Transfer Pricing Documents shall be mandatory for taxpayers enumerated whose annual gross sales/revenue for the subject taxable period exceeded ____________ and the total amount of related party transactions with foreign and domestic related parties exceeds Ninety Million Pesos (₱90,000,000)

• 200 million Pesos

• 150 million Pesos

• 180 million Pesos

• 250 million Pesos

The Transfer Pricing Documents and other supporting documents shall be submitted within ______ calendar days upon receipt of request by the Commissioner or his/her duly authorized representatives, pursuant to a duly issued Letter of Authority covering All Internal Revenue Taxes (AITR), subject to non-extendible period of 30 calendar days based on meritorious grounds.

• 10 days

• 15 days

• 30 days

• 60 days

The Transfer Pricing Documents and other supporting documents as set out in Section 6 of RR No. 19-2020 shall no longer be attached to the RPT Form.

• True

• False

The materiality threshold for reportable related party transactions is only relevant in determining who are required to prepare a Transfer Pricing Documents. A taxpayer who is required to file an RPT Form must disclose all related party transactions irrespective of the amount.

• True

• False

The BIR Form that was replaced by 1709.