Key Tips To Be Transfer Pricing Ready In Singapore

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Key tips to be Transfer Pricing ready in Singapore.

The submission of corporate tax returns dateline in Singapore is around the corner with most companies having to submit their tax return by 30 November 2023.

Here are our key tips to be transfer pricing ready
for tax return lodgements in Singapore.

Understand Transfer Pricing Requirements

Familiarize yourself with Singapore's transfer pricing regulations, particularly the Inland Revenue Authority of Singapore (IRAS) guidelines and the latest updates. Stay informed about any changes to the laws and regulations.

Timely Transfer Pricing Risk Assessment

Assess your company's transfer pricing risks and identify any potential areas of concern that you are unsure if the price is in line with transfer pricing. The ideal time to conduct this risk assessment is before closing the year end to have the option to perform adjustments to the price

Documentation and Compliance

Prepare and maintain proper transfer pricing documentation to demonstrate that your intercompany transactions are conducted at arm's length. In Singapore all transfer pricing needs to be completed by the time the company lodges the tax return i.e. 30 November 2023.

Transfer Pricing Documentation Review

In Singapore Taxpayers are required to review and update your transfer pricing documentation annually to ensure its accuracy and relevance. It is important to document any changes in your business operations, transfer pricing policies, or economic conditions that may impact your transfer pricing arrangements.

Stay Abreast of International Developments

Stay updated on global transfer pricing trends and developments, including updates from organizations like the Organisation for Economic Co-operation and Development (OECD). This will help you align your transfer pricing practices with international standards and best practices.

Proactive Approach

Adopt a proactive approach to transfer pricing compliance. Regularly review your transfer pricing practices, monitor changes in regulations, and address any potential transfer pricing risks before they become significant issues.

How can we help?

Transfer Pricing Solutions is a boutique transfer pricing firm who works directly with your team, applying our experience and expertise in transfer pricing to provide, prepare, document and assist in defending your international related party transactions. Our purpose is to make a difference in the service we provide to our clients by being practical, proactive and cost effective.

14 Jan

Registration for Multinational Enterprise Top-up Tax and Domestic Top-up Tax

Starting May 2026, in-scope multinational enterprise (MNE) groups must register for Singapore’s Multinational Enterprise Top-up Tax (MTT), Domestic Top-up Tax (DTT), and the GloBE Information Return (GIR) under the Multinational Enterprise (Minimum Tax) Act 2024.

2026 IRAS Indicative Margins for Related Party Loans

For the year 2026, IRAS has updated its indicative margin, reaffirming its support for simplified, arm’s length transfer pricing practices.

Applying the Arm’s Length Principle to Related Party Financial Transactions in 2026

Singapore taxpayers entering into financial arrangements with related parties must ensure compliance with the arm’s length principle. This includes transactions such as cash pooling, hedging, financial guarantees, captive insurance, and related party loans.