TAX MATTERS: 2020 transfer pricing documentation update

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THE 2020 tax year will be the second year Zimbabwean enterprises with intercompany transactions will be required to submit a Transfer Pricing (TP) return (ITF12C2).
This follows the introduction of TP legislation by the country in 2014. In terms of the law, intercompany taxpayers should determine their income tax liability using prices on transactions with their affiliates that meet the arm’s length principle.

Unlike other countries which only focus TP rules on international transactions, our legislation covers both the local and cross border transactions between related parties as well as transactions between the taxpayer and entities in tax havens.