Australia Updates Inbound Distributor Transfer Pricing Rules

The Australian Tax Office on Wednesday tightened qualifications for businesses to be deemed inbound distributors and thus take advantage of transfer pricing risk assessment tools.

The office’s update to its transfer pricing guidelines clarifies that an inbound distributor is an intermediary business that purchases goods from outside the country to be sold to businesses in Australia.

Their business isn’t primarily selling to household consumers — though they may have some retail operations.

The rules provide the transfer pricing guidelines for inbound distributions and equip taxpayers with a framework to gauge how ...