Uganda Transfer Pricing Documentation Requirements

Scope of the documentation obligation

Transfer pricing documentation must be prepared for all controlled transactions with multinational enterprises. There is currently no requirement to file the documentation; it is produced when requested, within 30 days. A formal Master File and Local File structure is anticipated as the rules develop, but the operative obligation is the documentation described here, so those formal files are not presented as current. A related-party disclosure form is circulated to most multinationals as part of the initial transfer pricing audit procedure.

Distinctive features of the Ugandan regime

The defining feature of the Ugandan regime is its audit-led character. With no routine filing requirement and no separate transfer pricing return, the documentation requirement is given effect chiefly through the audit, where the related-party disclosure form is issued to multinationals at the outset. The obligation therefore operates as a preparedness requirement rather than a periodic filing one. The transfer pricing regulations came into force in July 2011, so periods before that date fall outside a transfer pricing review, although other income tax provisions on recharacterisation may still apply.

Benchmarking and comparables

There is no legal requirement for local comparables, and a search conducted in regions with economic indicators similar to Uganda is accepted. Multi-year analysis over three years is common practice. A fresh benchmarking search is not required every year where the legal and economic circumstances of the transactions are unchanged, in which case a roll-forward of the comparables with a financial update is used. The general limitation period is three years, capable of remaining open where new information is obtained.