Simplified transfer pricing record-keeping options: 2021-22 interest rates – PCG 2017/2 updated

November 19, 2021

On Thursday 11 November, the ATO released an updated version of Practical Compliance Guideline PCG 2017/2, which gives eligible entities various simplified transfer pricing record-keeping options, including for low-level inbound and outbound loans.

In relation to the inbound loan option, one of the eligibility requirements is that the interest rate for small related party inbound loans cannot exceed a specified rate. PCG 2017/2 has been updated to include a maximum interest rate of 1.83% for the 2021-22 income year.

For the outbound loan option, the minimum interest rate for 2021-22 is 1.83 per cent.