Recommended format for electronic filing of transfer pricing documentation has been approved

In accordance with Article 105.15 (8) of the Tax Code, taxpayers that have concluded controlled foreign trade transactions involving goods on the Trade and Industry Ministry’s list are obliged to submit the documentation provided for in Article 105.15 (1) of the Tax Code to the tax authorities in relation to those transactions together with a notification of controlled transactions for the relevant year. The requirement applies to transactions with both related and unrelated persons.

• As a general rule, documentation must be filed by 20 May of the year following the reporting year
• Special rule for 2024: on the basis of Article 6 (10) of Federal Law No. 539-FZ of 27.11.2023, the time limit for filing documentation for 2024 has been extended to 1 December 2025.

Important: Article 129.11 of the Tax Code prescribes significant fines for failing to file documentation on time – 500,000 rubles for failing to submit documentation concerning a transaction (a group of similar transactions) and 1,000,000 rubles for failing to submit a local file.

The recommended XML format includes two main components:

1. Structured data in machine-readable form (XML file). This component contains key information on a transaction that enables the transaction to be matched to the notification of controlled transactions. It also contains detailed information on the transfer pricing method used.

The XML file includes the following data:

• the sequential number of the transaction
• total income/expenses
• the party to the transaction that is the taxpayer
• details of the counterparty (name, country of registration, TIN, whether or not it is a related entity)
• detailed information on the transfer pricing method used (see details below)

2. Appendix to the filing format. The second component is the transfer pricing documentation in text form, which is already familiar to many taxpayers and is prepared in accordance with the provisions of Article 105.15 of the Tax Code. 

Although the use of the XML format is voluntary, we recommend that taxpayers begin preparing to use it. Not only will it speed up the process of filing transfer pricing documentation with the Federal Tax Service, but it will also help taxpayers keep organized records of documentation filed, especially in view of the tightening of transfer pricing control in relation to foreign trade transactions involving goods on the Trade and Industry Ministry’s list.

B1’s team of professionals can help you assess the scope of work to be done, adapt your documentation processes to the new format and ensure compliance with all the new legislative requirements.

• Preparing an XML file in accordance with the filing format for transfer pricing documentation in relation to controlled foreign trade transactions involving goods on the Industry and Trade Ministry’s list using software specially designed by B1’s experts
• Analyzing a taxpayer’s transactions to assess whether they constitute controlled foreign trade transactions involving goods on the Industry and Trade Ministry’s list for the purpose of determining whether or not the taxpayer needs to file relevant documentation within the prescribed time limits
• Preparing and providing methodological support in relation to transfer pricing documentation and MNE group-related documentation, including master and local files, country-by-country reports, notifications of participation in an MNE group, and information from consolidated financial statements of MNE groups
• Support with various matters related to transfer pricing, including support in dealing with the tax authorities