Maintain transfer pricing documentation (Subdivision 815-D)
Multinational groups must keep contemporaneous transfer pricing documentation per Subdivision 815-D ITAA 1997.
Who must comply
Australian entities in multinational groups; threshold-dependent.
What triggers it
International dealings between associates.
When due
Contemporaneous — in place by tax return lodgement.
Evidence required
Master File, Local File, CbC Report; supporting analysis.
Max penalty
Documentation penalty up to $165,000 for failure to keep records; transfer pricing adjustment + interest + penalty tax
Summary
Subdivision 815-D of the ITAA 1997 sets contemporaneous transfer pricing documentation requirements. Aligned with OECD BEPS Action 13 — Master File, Local File and Country-by-Country Report depending on group size. Documentation must be in place when the tax return is lodged.
Enforced by
Source legislation
Topics
Related obligations
- CWLTHLodge Country-by-Country Report (CbC) for significant global entitiesMultinationals with global income >EUR 750M must lodge CbC Report annually.
- CWLTHAustralian Business Number (ABN) applicationEntities carrying on an enterprise in Australia need an ABN — without one, payers must withhold 47% PAYG from your payments. How to apply and who's eligible.
- CWLTHLodge Business Activity Statements at assigned frequencyGST-registered entities must lodge a BAS monthly, quarterly or annually as the ATO assigns.
- CWLTHMake trustee resolutions for trust distributions by 30 JuneDiscretionary trust trustees must validly resolve to distribute trust income before the end of the FY.
- CWLTHForeign bribery offence (Criminal Code Division 70)Bribing a foreign public official is a federal criminal offence — up to 10 years imprisonment.
- CWLTHWithhold PAYG from employee and contractor paymentsEmployers must withhold tax from wages, certain contractor payments + report via STP / BAS.
Frequently asked questions
- Who must comply with transfer pricing documentation (Subdivision 815-D)?
- Australian entities in multinational groups; threshold-dependent.
- What triggers transfer pricing documentation (Subdivision 815-D)?
- International dealings between associates.
- When is transfer pricing documentation (Subdivision 815-D) due?
- Contemporaneous — in place by tax return lodgement.
- What is the maximum penalty for transfer pricing documentation (Subdivision 815-D)?
- Documentation penalty up to $165,000 for failure to keep records; transfer pricing adjustment + interest + penalty tax
- What evidence is required for transfer pricing documentation (Subdivision 815-D)?
- Master File, Local File, CbC Report; supporting analysis.
Source: https://ato.gov.au/businesses-and-organisations/international-tax-for-business/in-detail/transfer-pricing. Rules Mate is not a law firm. Always verify against the live regulator source before acting.