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What Transfer Pricing Documents Do You Need to Satisfy Jordan?

23rd March 2022

By now, you’ve heard about Jordan’s new transfer pricing legislation. (If not, where have you been? The country introduced new transfer pricing laws back in June 2021 and provided implementation instructions in September.) Now, here we are in March 2022, and the Jordanian Income and Sale Tax Department has published several transfer pricing compliance forms on its online transfer pricing platform. What must the documents include? Everything but the kitchen sink. Let’s start with the transfer pricing disclosure form. Here, you’ll have to include standard info about the companies involved in the transactions: legal name, identification number, tax period, currency (Jordanian dinars), and the nature of the relationship (parent, subsidiary, branch, etc.), among other general details. Then you’ll have to include financial specifics: total revenue, expenses, profit or losses for related parties (as disclosed in the tax return), total amount on purchases or sales of goods, financing of research and development, and more. Then there’s the transfer pricing reconcilement form, which you need if you’re claiming a corresponding transfer pricing adjustment. The form requires much of the same legal info as the others (name, tax identification number, and so on), plus information about the nature of the transaction, the adjustment needed, and the reasons for it. Then there’s the country-by-country notification, which requests general information about entities in the multinational group: the ultimate parent entity, its surrogate entity, the designated taxpayer, and other constituent entities. And, of course, you’ll also have to prepare the country-by-country report, the master file, and the local file—all of which follow the OECD’s BEPS Action 13 recommendations. Except, that is, for one small detail: All transfer pricing documents must be submitted in Arabic.