Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing
Chapter 6【 Investigation, Assessment and Related Adjustments】 Article 33
Article 33 Tax collection authorities shall conduct investigations on the Transfer Pricing of profit-seeking enterprises in accordance with the following rules:
1. Provided that the profit-seeking enterprises have produced the transfer pricing report or the substitute document as required by Article 22 hereof, the competent tax authorities shall assess the Arm's-length result of the Controlled Transactions pursuant to the Regulations, and assess the taxable income of related taxpayers.
2. Provided that the profit-seeking enterprises have not or cannot produce the transfer pricing report or the substitute document pursuant to Article 22 hereof, the tax collection authorities may make an assessment in light of available data. In the event that no available data and the transfer pricing report or the substitute document which the profit-seeking enterprises failed to produce are relevant to the revenue, costs, or expenses, the tax collection authorities may refer to the relevant business net profit, operating cost and operating expense to compute the taxable income according to the profit standard of the same trade concerned pursuant to Article 83 of the ITA and Article 81 of the Enforcement Rules of the ITA.
3. If the profit-seeking enterprises fail to submit or provide the information or document related to their taxable income, the tax collection authorities may handle the case pursuant to Article 46 of the Tax Collection Act.