Haiti doesn’t have dedicated transfer pricing laws but has embraced international agreements like the Multilateral Competent Authority Agreement (MCAA) to facilitate the exchange of Country-by-Country reports. This move aligns with global efforts, particularly the OECD’s BEPS program on corporate taxes.
The legal framework for transfer pricing in Haiti primarily relies on two decrees: the Decree of 29 September 2005, which amended the Income Tax Law, and the Decree of 29 September 2005 related to the tax identification card. These decrees set the foundation for addressing income tax matters in the country.
Haiti’s Income Tax Decree does not provide a statutory definition of a “related party,” leaving this term open to interpretation.
While there is no explicit requirement for transfer pricing documentation, taxpayers in Haiti are expected to disclose payments made to individuals and entities for various purposes like interest, fees, and more. These disclosures should be included in tax returns, which are due between October 1st and 31st for the previous fiscal year.
Haiti does not have established rules or practices for Advance Pricing Agreements (APAs) at present.
Haiti’s Income Tax Law, in Article 66, addresses the establishment of income tax obligations for companies linked to entities outside Haiti. It includes indirect profit transfers and provides a framework for incorporating such transfers into income results, among other provisions. When there’s a lack of specific evidence for making adjustments, the taxable income is determined by comparing it to similar businesses. The taxpayer has 30 days to respond to assessments.
While there are no specific transfer pricing documentation requirements, taxpayers are encouraged to maintain contemporaneous documentation.
Haiti does not have specific rules stipulating the methods of transfer pricing.
Haiti lacks an official database for comparable information, which can be a significant challenge for conducting benchmark studies.
Inter-company legal agreements, which formalize the relationships between group entities, are less emphasized, as the “conduct of parties” takes precedence following the OECD’s 2022 Guidelines.
There is no information provided regarding the need to include financial statements in transfer pricing documentation.
Documentation requirements, formats, filing deadlines, notification obligations, thresholds, and languages are not explicitly defined, but upon request by tax authorities, documentation must be submitted within one month. Auditing limitations are generally set at five years from the end of the tax year.
Documentation submitted to tax authorities in Haiti should be in French.
While Haiti has signed the MCAA, there is no information regarding Country-by-Country (CbC) reporting notifications.
Based on an inference from Article 184 of the Income Tax Law, enterprises are advised to retain records for at least five years.
Haiti does not have specific transfer pricing penalties, but corporate tax penalties and interests apply. Delays in tax return submissions may result in fines of HTG 1,000 per month, up to HTG 10,000.