On 16 March 2016, Turkey's tax authority issued a draft communiqué for public comment on new transfer pricing documentation requirements based on the guidelines developed as part of Action 13 of the OECD BEPS Project; including requirements for:

• Country-by-Country (CbC) report;
• Master file; and
• Local file

CbC Report

The draft CbC reporting requirement will apply for ultimate parent entities of MNE groups resident in Turkey when the annual consolidated group revenue in the previous year meets a threshold of TRY 2.37 billion (~USD 825 million). The requirements will apply for fiscal years beginning on or after 1 January 2016, with an initial filing deadline of 31 December 2017. Groups required to file will need to notify the Turkish tax authority by the end of the fiscal year concerned as to which group entity will be filing the report (31 December 2016 for first year).

Master File

The draft Master file requirement will apply for Turkish resident entities that are members of MNE groups with a total asset value of at least TRY 250 million (~USD 87 million) at the end of the previous year and annual revenue of TRY 250 million. When required, the Master file must be prepared by the end of the second month following the due date for the corporate tax return, and be available upon request by the tax authority.

Local File

The draft Local file requirements will apply for any group entities resident in Turkey for transactions exceeding TRY 30,000 (~USD 10,440).

New Disclosure Form

In addition to the three-tiered documentation requirements based on Action 13, a new related-party transactions disclosure form will be required for Turkish resident entities if the entity's total asset value is at least TRY 100 million (~USD 34.8 million) at the end of the previous year and annual revenue is at least TRY 100 million. The form includes details of all related party transactions and related parties. It is unclear how this will differ from the current disclosure form due with the tax return.