# Mali transfer-pricing source-reference draft v0.1

> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

**2026 research draft; operative 2026 law and procedures remain unproved.** This conditional workpaper reconstructs the older DGI online CGI/LPF text with amendment labels through 2017 in the provisions used. It does not establish unchanged 2025 or 2026 law. The enacted 2026 fiscal Annex U and complete later amendment chain have not been obtained. Do not use this draft to determine a client's current liability, deadline or filing without closing that source gate. The year metadata identifies the research job; it supplies neither a publication safeguard nor an accountant attestation.

## Who this applies to

The source CGI article 81 addresses IS enterprises dependent on, controlling, or under common control with enterprises outside Mali. Dependency includes a majority capital holding directly or through an intermediary, or actual decision-making power. A low ownership percentage is therefore not conclusive if the facts establish control. The source adds back profits indirectly transferred by purchase/sale pricing, undercapitalisation or other means. A contract or invoice alone does not prove a market price. [CGI art. 81(1)–(2)](https://www.dgi.gouv.ml/CGI/).

The dependency condition is dispensed with for transfers to an enterprise in a privileged regime or non-cooperative jurisdiction. The source defines those terms and provides for a periodically established ministerial list, with a specified fallback to international-organisation lists. This draft supplies no current country list or automatic country classification. The annual-documentation threshold below does not exempt a smaller enterprise from article 81 or ordinary expense evidence. [CGI art. 81(3); LPF art. 57-A](https://www.dgi.gouv.ml/CGI/).

## Rates, bands and thresholds

These are older-source conditions only. Ordinary IS computation belongs to [corporate income tax](ml-corporate-income-tax.md); this job has no separate TP tax rate.

| Source rule | Condition and amount | Official provision |
|---|---|---|
| Dependency | Majority capital directly/interposed, actual decision power, or common control | [CGI art. 81(2)](https://www.dgi.gouv.ml/CGI/) |
| Privileged regime | No tax, or foreign profit/income tax rate more than 10 percentage points below the rate that enterprise would owe under ordinary Mali conditions | [CGI art. 81(3)](https://www.dgi.gouv.ml/CGI/) |
| Annual declaration and documentation | Mali legal person, turnover at least XOF 3 billion and the stated foreign dependency/control condition; previous exercise package | [LPF art. 57-A I](https://www.dgi.gouv.ml/CGI/) |
| Late documentation fine | 1% of declared turnover for each month late, capped at 5%; source expressly penalises late documentation, not every missing tax document | [LPF art. 57-A I](https://www.dgi.gouv.ml/CGI/) |
| Audit information response | Specified period at least one month; reasoned extension can bring total to no more than three months | [LPF art. 57-B](https://www.dgi.gouv.ml/CGI/) |
| Insufficient audit response | Formal notice specifies missing answers, sanctions and one month to complete | [LPF art. 57-B](https://www.dgi.gouv.ml/CGI/) |

## The base

Start with a transaction register by counterparty, country, relationship, contract, nature, invoice, currency, amount and accounting entry. Reconcile it to purchases, sales, royalties, technical assistance, financing and cost-sharing records. Identify actual functions, assets and risks on both sides and changes during the year. The source demands effective, sufficiently supported business expenses; the embedded implementing decree addresses real, non-excessive amounts for the enumerated royalties, technical assistance and affiliated purchases/sales using independent full-competition prices. [CGI arts. 49, 51(2); embedded Décret 2012-277, amended in 2017, arts. 7–8](https://www.dgi.gouv.ml/CGI/).

Explain the chosen method and why it fits those facts. LPF article 57-A II requires selection/application reasons and relevant comparables where the method needs them. Keep the source data, adjustments for material differences and calculation trail. It does not justify assuming an OECD method hierarchy, an automatic mark-up, a thin-capitalisation ratio or a safe harbour; none is established here. A simple price comparison is usable in the example only because its comparability is stipulated, not because every invoice has a quoted substitute price. [LPF art. 57-A II(2)(d)–(e); CGI art. 81](https://www.dgi.gouv.ml/CGI/).

Build the source group file with activity and changes, legal/operational links and participating entities, functions/risks, relevant main intangibles and group pricing policy. Build local information with activity changes, nature and amount of related flows, royalties, cost-sharing agreements, relevant advance agreements/rulings, selected methods and analysis of functions/assets/risks. Neither file replaces evidence of each transaction or the ordinary profit return. For the source's non-cooperative related-party branch, collect the additional beneficiary documentation, including balance sheet and profit-and-loss statement under the article 60 conditions. Do not mark that branch complete without establishing the applicable country classification. [LPF art. 57-A I–III](https://www.dgi.gouv.ml/CGI/).

Reconcile each supported adjustment to accounting profit once, then route it to the ordinary profit-base calculation. Explain both amount and direction: an overstated related-party purchase increases the Mali deduction and can transfer profits outward; an evidenced correction therefore increases the Mali taxable-profit starting point. Avoid adding the same disallowance again as an unsupported expense. Head-office allocation and its separate source limitation belong to [cross-border tax](ml-cross-border-tax.md). [CGI arts. 49, 80–81](https://www.dgi.gouv.ml/CGI/).

## Deadlines and filing

The source requires the simplified TP declaration and supporting documentation for the previous exercise within the article 57 ordinary-return period, whose figures are kept in [corporate income tax](ml-corporate-income-tax.md). It prescribes an administration-supplied model. The special article 57-A IV transition concerned exercise 2016; it is not an extension for a 2026 job. Current filing models, any later thresholds/deferrals and operative due dates remain held. [LPF arts. 57–57-A](https://www.dgi.gouv.ml/CGI/).

Prepare the relationship/threshold decision, transaction reconciliation, group/local package and ordinary-return cross-reference. Obtain the actual current prescribed declaration, instructions, fields, submission channel and acknowledgment requirements before filing. No authenticated TP portal, upload format, box or payment route has been inspected. Retain the final submitted version, receipt and any request/response evidence once the operative procedure is established. These are preparation steps, not a completed 2026 submission method.

During an audit, article 57-B permits a precise information request where gathered facts suggest an indirect profit transfer. It must identify activity/product, jurisdiction, entity, relevant amounts and response period. Log service, scope, requested material and any reasoned extension; answer from the actual transaction file. Article 57-E contains an advance pricing-agreement mechanism, but current application procedure, continued effectiveness and reliance on silence are unproved. Do not treat an unacknowledged request as an approved current agreement. Article 57-D's special international-information limitation provisions are also outside the completed method. [LPF arts. 57-B–57-E](https://www.dgi.gouv.ml/CGI/).

## Penalties and interest

For the qualified annual documentation obligation, apply the source monthly fine and cap in the table to declared turnover, not transferred profit. This does not make the fine a tax deduction or settle other sanctions. In an audit, no response, missing or partial documentation allows the administration to evaluate the affected bases from available elements; without precise elements it compares normally operated similar enterprises. The separate ordinary tax, interest, limitation and dispute consequences require the operative chain and their own conditions. [LPF arts. 57-A I, 57-B–57-D](https://www.dgi.gouv.ml/CGI/).

## Cross-border points

Map related foreign entities by actual ownership and decision power, not merely supplier address or group branding. Separate the article 81 adjustment, ordinary deductibility, withholding and VAT tests; satisfying one does not resolve the others. This source set establishes no current treaty reduction, corresponding adjustment, mutual-agreement outcome, country-by-country reporting threshold or treaty-protected PE result. Refer payment/source questions to [cross-border tax](ml-cross-border-tax.md), the existing [corporate](ml-corporate-income-tax.md) and [VAT](ml-vat-gst.md) figure homes. [CGI arts. 81, 94–98, 196–197](https://www.dgi.gouv.ml/CGI/).

## Two worked examples that recompute

Both cases test the identified older source only. No later amendment or special regime is assumed; neither authorises an actual assessment or penalty.

**A supported comparable changes profit in one direction.** A Mali IS company buys 10,000 identical units from its controlling foreign parent for XOF 14,000 each. Assume reliable independent evidence establishes XOF 12,000 per unit after all material comparability adjustments, the goods were expensed in the period and no other correction applies. Recorded purchases are XOF 140 million versus a supported XOF 120 million: an outward profit transfer of XOF 20 million. Accounting profit XOF 30 million becomes XOF 50 million before other ordinary tax adjustments. This does not determine final IS or a universally acceptable pricing method.

```oa-check
name: Mali older TP source, supported purchase-price correction
inputs:
  units: 10000
  related_price: 14000
  supported_price: 12000
  accounting_profit: 30000000
steps:
  recorded_purchase: units * related_price
  supported_purchase: units * supported_price
  outward_transfer: recorded_purchase - supported_purchase
  adjusted_profit: accounting_profit + outward_transfer
expected:
  recorded_purchase: 140000000
  supported_purchase: 120000000
  outward_transfer: 20000000
  adjusted_profit: 50000000
```

**Threshold and monthly cap are separate tests.** Assume a Mali legal person has the required foreign control relationship, declared turnover exactly XOF 3 billion, a legally established source due date and late documentation for two complete penalty months. Equality enters the source threshold; the fine is XOF 60 million. At eight complete months the uncapped amount is XOF 240 million but the source cap limits it to XOF 150 million. At XOF 2,999,999,999 the turnover limb fails, but article 81 and transaction evidence still apply. The example stipulates complete months; it does not invent a partial-month rule or prove a current deadline.

```oa-check
name: Mali older TP source, documentation fine and cap
inputs:
  declared_turnover: 3000000000
  months_short: 2
  months_long: 8
steps:
  cap: declared_turnover * 0.05
  short_fine: min(declared_turnover * 0.01 * months_short, cap)
  long_uncapped: declared_turnover * 0.01 * months_long
  long_fine: min(long_uncapped, cap)
expected:
  cap: 150000000
  short_fine: 60000000
  long_uncapped: 240000000
  long_fine: 150000000
```

## Ask the client first

- Which entities, foreign counterparties, ownership chains and actual decision rights apply?
- What declared turnover, period and legally established deadline determine the source documentation branch?
- What transactions, functions, assets, risks and intangibles changed during the period?
- What contracts, actual service/delivery evidence, price data and comparability adjustments support each flow?
- Are there cost-sharing agreements, rulings, advance agreements or an audit information request?
- Have the operative amendment chain, current country classifications, prescribed forms and filing route been established?

## Sources

| Official source | Actual read scope | Read on |
|---|---|---|
| [DGI, older CGI/LPF consolidation](https://www.dgi.gouv.ml/CGI/) | CGI arts. 49–51, 79–85, 94–98, 196–197; embedded Décret 2012-277 arts. 7–8 with 2017 amendment labels; LPF arts. 57–61 and neighbours read offline, not the entire code or a 2026 consolidation | 2026-11-01 |

Not yet confirmed: full later statutory/regulatory chain and enacted 2026 Annex U; operative annual threshold, deadline, penalty and partial-month treatment; current non-cooperative lists and privileged-regime comparisons; any later pricing-method, financing or reporting rules; current declaration/model/boxes/upload/authentication/payment; advance-agreement practice or silence protection; special limitation and full sanction/dispute interactions; treaty/corresponding-adjustment relief. No operative 2026 approval, comprehensive TP coverage or accountant attestation is given.