Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing Article 18
The Comparable Profit Method prescribed in the Regulations refers to the Arm's-length transaction result of a comparable transaction determined based on the comparable operating profit calculated by using the average profit margin of a comparable Uncontrolled Transaction within a specific time period.The steps of adopting the Comparable Profit Method are as follows:1. Select the tested parties and tested activities in accordance with Paragraph 3 of this Article.2. Select the comparable Uncontrolled Transactions similar to the selected tested party and tested activities in accordance with subparagraph 1 of Article 7 and Article 8 hereof.3. Select the profit level indicator in accordance with Paragraphs 4 to 6 of this Article.4. Determine the average profit margin of the comparable Uncontrolled Transaction. The average profit margin is equivalent to the sum of the numerator under any subparagraph of Paragraph 4 of this Article within a specific time period divided by the sum of the denominator under the same Paragraph 4 of this Article within the same time period. The aforesaid specific time period is prescribed in Subparagraph 4 of Paragraph 6 of this Article.5. Calculate the comparable operating profit by using the average profit margin prescribed in the preceding Paragraph and the annual average of the operating assets, net sales revenue, operating expenses, or other items of the related business activities of tested parties within a specific time period, and determine the Arm's-length range in accordance with Items 1 and 2, Subparagraph 5 of Article 7 hereof.6. The operating profit is deemed to be at Arm’s-length if the average operating profit earned from engaging in the tested business activity by the tested party within a specific period falls within the Arm's-length range prescribed in the preceding Paragraph. If the operating profit falls outside the Arm's-length range, the operating profit of the tested party in the current year shall be adjusted to the median of the operating profits of all the comparable Uncontrolled Transactions in the current year. In the event that the current year data is not available as described under Subparagraph 4 of Paragraph 6 of this Article, the adjustment shall be made based on the median of the operating profit of all the comparable Uncontrolled Transactions as prescribed in the preceding subparagraph.7. Determine the Arm's-length Result of the participant(s) of the same Controlled Transaction who, other than the tested party, which is/are liable to the ROC income tax pursuant to the ITA, based on the Arm's-length operating profit of the tested party.The tested party will be the participant of the Controlled Transaction and who could provide the reliable data of the Comparable Uncontrolled Transactions, and the operating profit attributable to the Controlled Transactions can be verified by using the fewest adjustments and get the most reliable results of the adjustment. In other words, the most appropriate tested party will be the least complex of the controlled participants and do not own valuable intangible property or unique assets; or even if it owns such assets but they are similar to the intangible property or unique assets of potential uncontrolled comparables. The so called tested activity will be the most narrow identifiable business activity related to the Controlled Transaction which the tested party joined in.The profit level indicators used by Comparable Profit Method include:1. Return on operating assets (“ROA”): the ratio calculated by using the net operating profit as the numerator, and the operating assets as the denominator.2. Return on Sales (“ROS”): the ratio calculated by using the net operating profit as the numerator, and the net sales revenue as the denominator.3. Berry Ratio: the ratio calculated by using the gross profit as the numerator, and the operating expenses as the denominator.4. Return on cost and expense: the ratio calculated by using the net operating profit as the numerator, and the cost of goods sold or operating cost and expense as the denominator.5. Other profit level indicators approved by the MOF.The net operating profit mentioned in the preceding paragraph means the amount of the gross operating profit less the operating expenses, excluding the income unrelated to the tested activities and the extra-ordinary income and loss irrelevant to going-concern activities of the tested party. The operating assets shall be the assets used by the tested party in the relevant business activity, including the fixed assets and current assets but excluding excess cash, short-term and long-term investments, idle assets, and assets irrelevant to the business activities. The operating expenses do not include the non-business related interest expenses, income tax and other expenses irrelevant to the tested activity.The selection of the profit level indicators prescribed in Paragraph 4 of this Article shall be based on the relevant activity of the tested party, and the following factors shall be considered:1. The nature of the tested party’s activity.2. The degree of comparability of the available information regarding the Uncontrolled Transaction, the quality of the data used and the assumptions made.3. The reliability of the profit level indicator measuring the Arm's-length operating profit of the tested party.4. The time period covered by the information prescribed in Item 2 of this Paragraph should be able to reflect the reasonable profit of the Uncontrolled Transaction. The time period should include at least three consecutive years including the year of the subject transaction and two years preceding such transaction. In case the current year data is not available to the profit-seeking enterprise when filing the current year profit-seeking enterprise income tax return, the profit-seeking enterprise may use at least three of the consecutive prior years’ data of the comparable Uncontrolled Transactions without current year data.When evaluating the applicability of Comparable Profit Method, the factors prescribed in Paragraph 1 of Article 8 hereof, especially the following factors among the tested parties and tested activities, and the unrelated parties and the related activities conducted by them, shall be considered:1. The factors affecting the comparability, including the functions performed, risks assumed, the operating assets employed, the market level of the relevant trading products or services, the operation scale, the stage of a business or product cycle, etc.2. The rationality and compatibility of the allocation of costs and expenses, income and assets between the relevant activities and other activities of the tested parties.3. Consistency in accounting practices.If there are any differences of the factors prescribed in the preceding paragraph between the tested parties with the tested activities and the unrelated parties with the business activities conducted by them, appropriate adjustments should be made to eliminate the effect with respect to the operation profit. In the event that the effect of aforementioned differences cannot be eliminated by appropriate adjustments, other Arm's-length Methods as set forth hereunder shall be employed.
中文原文 營利事業所得稅不合常規移轉訂價查核準則第18條
本準則所定可比較利潤法，係以可比較未受控交易於特定年限內之平均利潤率指標為基礎，計算可比較營業利潤，並據以決定受控交易之常規交易結果。
採用可比較利潤法時，依下列步驟辦理：
一、選定受測個體及受測活動；其選定，依第三項規定辦理。
二、選定與受測個體及受測活動相似之可比較未受控交易；其選定，依第七條第一款及第八條規定辦理。
三、選定利潤率指標；其選定，依第四項至第六項規定辦理。
四、決定可比較未受控交易之平均利潤率。
所稱平均利潤率，指第四項任一款規定之分子於特定年限內全部金額之總和，除以同款規定之分母於特定年限內全部金額之總和。
所稱特定年限，依第六項第四款規定辦理。
五、以前款平均利潤率指標，依受測個體之受測活動於特定年限內之營業資產、銷貨淨額、營業費用或其他基礎之年平均數，計算可比較營業利潤，並依第七條第五款第一目及第二目規定產生常規交易範圍。
六、受測個體從事受測活動於特定年限內之平均營業利潤在前款常規交易範圍之內者，視為符合常規；在該範圍之外者，按交易當年度所有可比較營業利潤之中位數調整受測個體當年度之營業利潤。
其有第六項第四款未能取得交易當年資料之情形者，按前款所有可比較營業利潤之中位數調整之。
七、以受測個體之常規營業利潤為基礎，決定受測個體以外依本法規定應繳納中華民國所得稅之同一受控交易其他參與人之常規交易結果。
受測個體，以受控交易之參與人中，能取得可信賴之可比較未受控交易資料，且於驗證應歸屬於該參與人之營業利潤時所需作之差異調整最少，其調整結果最可信賴者決定之；即應以參與人中複雜度最低，且未擁有高價值無形資產或特有資產，或雖擁有該資產但與可比較未受控交易所擁有之無形資產或特有資產類似之參與人，為最適之受測個體。
受測活動，指受測個體參與受控交易可細分至最小且可資辨認之營業活動。
可比較利潤法所使用之利潤率指標，包括：
一、營業資產報酬率：以營業淨利為分子、營業資產為分母所計算之比率。
二、營業淨利率：以營業淨利為分子、銷貨淨額為分母所計算之比率。
三、貝里比率：以營業毛利為分子、營業費用為分母所計算之比率。
四、成本及營業費用淨利率：以營業淨利為分子，銷貨成本或營業成本與營業費用為分母所計算之比率。
五、其他經財政部核定之利潤率指標。
前項所稱營業淨利，指營業毛利減除營業費用後之金額，不包括非屬受測活動之所得及與受測個體繼續經營無關之非常損益。
所稱營業資產，指受測個體於相關營業活動所使用之資產，包括固定資產及流動資產，但不包括超額現金、短期投資、長期投資、閒置資產及與該營業活動無關之資產。
所稱營業費用，不包括非屬經營本業之利息費用、所得稅及與受測活動無關之費用。
第四項利潤率指標之選定，應以受測個體之受測活動為基礎，並考量下列因素：
一、受測個體之活動性質。
二、所取得未受控交易資料之可比較程度及其所使用資料與假設之品質。
三、該指標用以衡量受測個體常規營業利潤之可信賴程度。
四、第二款資料所涵蓋之期間需足以反映可比較未受控交易之合理報酬，其至少應包括交易當年度及前二年度之連續三年度資料。
營利事業於辦理交易當年度營利事業所得稅結算申報時，未能取得交易當年度可比較未受控交易資料者，得以不包括當年度之至少連續前三年度資料為基礎。
評估可比較利潤法之適用性時，應考量第八條第一項規定之因素，尤應特別考量受測個體及受測活動與非關係人及其所從事相關活動之下列因素：
一、影響二者間可比較程度之因素，包括執行之功能、承擔之風險、使用之營業資產、相關之營業、交易標的資產或服務之市場、營業規模、位於商業循環或產品循環之階段。
二、成本、費用、所得及資產，於受測活動及其他活動間分攤方式之合理性及適宜性。
三、會計處理之一致性。
受測個體及受測活動，與非關係人及其所從事之相關活動間，如存在前項因素之差異，應就該等差異對營業利潤之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。
採用可比較利潤法時，依下列步驟辦理：
一、選定受測個體及受測活動；其選定，依第三項規定辦理。
二、選定與受測個體及受測活動相似之可比較未受控交易；其選定，依第七條第一款及第八條規定辦理。
三、選定利潤率指標；其選定，依第四項至第六項規定辦理。
四、決定可比較未受控交易之平均利潤率。
所稱平均利潤率，指第四項任一款規定之分子於特定年限內全部金額之總和，除以同款規定之分母於特定年限內全部金額之總和。
所稱特定年限，依第六項第四款規定辦理。
五、以前款平均利潤率指標，依受測個體之受測活動於特定年限內之營業資產、銷貨淨額、營業費用或其他基礎之年平均數，計算可比較營業利潤，並依第七條第五款第一目及第二目規定產生常規交易範圍。
六、受測個體從事受測活動於特定年限內之平均營業利潤在前款常規交易範圍之內者，視為符合常規；在該範圍之外者，按交易當年度所有可比較營業利潤之中位數調整受測個體當年度之營業利潤。
其有第六項第四款未能取得交易當年資料之情形者，按前款所有可比較營業利潤之中位數調整之。
七、以受測個體之常規營業利潤為基礎，決定受測個體以外依本法規定應繳納中華民國所得稅之同一受控交易其他參與人之常規交易結果。
受測個體，以受控交易之參與人中，能取得可信賴之可比較未受控交易資料，且於驗證應歸屬於該參與人之營業利潤時所需作之差異調整最少，其調整結果最可信賴者決定之；即應以參與人中複雜度最低，且未擁有高價值無形資產或特有資產，或雖擁有該資產但與可比較未受控交易所擁有之無形資產或特有資產類似之參與人，為最適之受測個體。
受測活動，指受測個體參與受控交易可細分至最小且可資辨認之營業活動。
可比較利潤法所使用之利潤率指標，包括：
一、營業資產報酬率：以營業淨利為分子、營業資產為分母所計算之比率。
二、營業淨利率：以營業淨利為分子、銷貨淨額為分母所計算之比率。
三、貝里比率：以營業毛利為分子、營業費用為分母所計算之比率。
四、成本及營業費用淨利率：以營業淨利為分子，銷貨成本或營業成本與營業費用為分母所計算之比率。
五、其他經財政部核定之利潤率指標。
前項所稱營業淨利，指營業毛利減除營業費用後之金額，不包括非屬受測活動之所得及與受測個體繼續經營無關之非常損益。
所稱營業資產，指受測個體於相關營業活動所使用之資產，包括固定資產及流動資產，但不包括超額現金、短期投資、長期投資、閒置資產及與該營業活動無關之資產。
所稱營業費用，不包括非屬經營本業之利息費用、所得稅及與受測活動無關之費用。
第四項利潤率指標之選定，應以受測個體之受測活動為基礎，並考量下列因素：
一、受測個體之活動性質。
二、所取得未受控交易資料之可比較程度及其所使用資料與假設之品質。
三、該指標用以衡量受測個體常規營業利潤之可信賴程度。
四、第二款資料所涵蓋之期間需足以反映可比較未受控交易之合理報酬，其至少應包括交易當年度及前二年度之連續三年度資料。
營利事業於辦理交易當年度營利事業所得稅結算申報時，未能取得交易當年度可比較未受控交易資料者，得以不包括當年度之至少連續前三年度資料為基礎。
評估可比較利潤法之適用性時，應考量第八條第一項規定之因素，尤應特別考量受測個體及受測活動與非關係人及其所從事相關活動之下列因素：
一、影響二者間可比較程度之因素，包括執行之功能、承擔之風險、使用之營業資產、相關之營業、交易標的資產或服務之市場、營業規模、位於商業循環或產品循環之階段。
二、成本、費用、所得及資產，於受測活動及其他活動間分攤方式之合理性及適宜性。
三、會計處理之一致性。
受測個體及受測活動，與非關係人及其所從事之相關活動間，如存在前項因素之差異，應就該等差異對營業利潤之影響進行合理之調整，其無法經由合理之調整以消除該等差異者，應依本準則規定採用其他適合之常規交易方法。