TGS Innovised—De Voorwaarts
Transfer pricing · Documentation

Transfer pricing documentation: the Dutch transfer pricing file

TGS Innovised — De Voorwaarts

Updated: 30 September 2026

Key takeaways
  • Every business with intercompany transactions must support its transfer prices in its records.
  • From € 50 million in group revenue: a master file and local file, in the records by the tax return deadline.
  • From € 750 million: also a CbC report within 12 months after the financial year, and a notification.
  • If documentation is missing, you must demonstrate that the prices are at arm’s length.

The transfer pricing documentation you need depends on the size of your group. On this page, you can read about the three levels of documentation under Dutch law, what a transfer pricing file should contain and which mistakes to avoid. This page belongs to the article Transfer pricing for SMEs.

Three levels of transfer pricing documentation

Level 1: all taxpayers (Article 8b(3) of the Corporate Income Tax Act)

Do you have transactions with related entities? Then your records must show:

  • How the transfer prices were determined; and
  • That they are at arm’s length.

The law (in Dutch) does not prescribe a fixed format. For an SME with a limited number of transactions, a concise memo for each type of transaction may suffice, provided the reasoning can be followed.

Please note The requirement also applies to domestic transactions between companies that do not form a fiscal unity (fiscale eenheid, the Dutch tax consolidation regime).

Level 2: group revenue from € 50 million (Article 29g of the Corporate Income Tax Act)

These groups need two documents:

  • Master file: an overview of the group as a whole, covering its structure, activities, intangibles, financing and transfer pricing policy.
  • Local file: the Dutch entity and its transactions, covering the functional and risk analysis, the methods chosen, benchmarks and the reconciliation with the financial data.

Both must be available in the records no later than the deadline for filing the corporate income tax return. You do not submit them. The form and content are set out in the annexes to the implementing regulations.

Level 3: group revenue from € 750 million (Articles 29b et seq. of the Corporate Income Tax Act)

In addition, a country-by-country report (CbCR) is required. It must be filed within 12 months after the end of the financial year. Dutch group entities must also notify the Dutch Tax Administration, no later than the last day of the financial year, which entity will file the report (notification). See the Dutch Tax Administration’s information on country-by-country reporting (in Dutch).

What should a transfer pricing file contain? A practical table of contents

Table of contents for your file
  • Group and organisation: legal structure, shareholders and management.
  • Business activities and value chain: where is value created?
  • Overview of transactions: all intercompany transactions with amounts.
  • Functional and risk analysis for each transaction: who does what, who bears which risk and who controls that risk (control over risk)?
  • Choice of method and the reasons for it, for example CUP, cost plus or TNMM.
  • Benchmark or another comparability analysis.
  • Reconciliation with the financial statements, for example a segmentation by transaction.
  • Agreements: copies or references.
  • Year-end adjustments and how they are processed.

Simplifications

  • Low value-adding intra-group services, such as administration, HR and IT support, may be charged at cost plus 5% without an extensive benchmark. This follows the OECD Guidelines, and the Transfer Pricing Decree 2022 (in Dutch) allows it subject to conditions. You must, however, show that the service was actually provided and benefits the recipient (the benefit test).
  • Amount B for distributors in covered jurisdictions (see the page Amount B in practice).

Common mistakes in transfer pricing files

MistakeConsequenceSolution
File prepared only after questions from the tax authorityLess evidential weightDocument when entering into the transaction
Outdated benchmarkSupport no longer reflects the marketNew benchmark every 3 years, update financial data annually
File differs from the agreements or actual practiceThe tax authority follows what actually happenedKeep agreements, invoices and the file consistent
Result outside the range, without adjustmentAdjustment to the medianMonitor during the year and include an adjustment mechanism
Management fee without evidence of servicesDeduction deniedRecord the work with time spent, reports and emails
No reconciliation with the financial statementsQuestions during the audit and in the tax returnPrepare a segmentation and reconciliation overview

Burden of proof and penalties

  • Is the Article 8b documentation missing or inadequate? Then the burden of proof shifts: you must demonstrate that the prices are at arm’s length (reversal of the burden of proof).
  • Failing to prepare the master file or local file, or preparing it late or incompletely, is a penalty offence in the case of intent or gross negligence, and in the case of intent also a criminal offence.
  • Even if no penalty is imposed, a good file provides strong arguments in a mutual agreement procedure (MAP) or objection procedure.

Link with the financial statements and the audit

The auditor assesses intercompany positions on, among other things:

  • Valuation of receivables from group companies, including possible write-downs;
  • Tax positions: is a provision needed for an uncertain transfer pricing position (Dutch GAAP RJ 272 / IFRIC 23)?
  • Related parties: is the disclosure of related party transactions complete?

A good transfer pricing file therefore also supports a smooth audit of the financial statements.


Frequently asked questions about transfer pricing documentation

When do I need a master file and local file in the Netherlands?
A master file and local file are required for groups with group revenue of € 50 million or more (Article 29g of the Dutch Corporate Income Tax Act). Both must be available in the records no later than the deadline for filing the corporate income tax return. You do not submit them. Smaller groups must still support their transfer prices in their records.
What happens if my transfer pricing documentation is missing?
The burden of proof then shifts to you: you must demonstrate that the prices are at arm’s length. That is difficult without support dating from the time of the transaction. Failing to prepare a required master file or local file may also lead to a penalty in the case of intent or gross negligence, and to prosecution in the case of intent.
How often should I update the benchmark in my transfer pricing file?
In practice, a new benchmark is prepared every 3 years, while the financial data of the comparable companies is updated annually. An outdated benchmark no longer reflects the market and weakens your support. In addition, keep your agreements, invoices and transfer pricing file consistent with what actually happens.

More on transfer pricing

Need help with your transfer pricing file?

Would you like us to set up or review your transfer pricing file? Contact our international tax specialists.

Disclaimer This article is for information purposes only and is not a substitute for personal advice.
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