New requirement for contemporaneous transfer pricing (TP) documentation to be prepared prior to the due date for filing the tax return, removal of the provision for offsetting adjustments, and a new definition of arm’s length range - these are just some of the changes introduced by the Income Tax (Transfer Pricing) Rules 2023 (hereafter referred to as “2023 TP Rules”) to Malaysia’s TP regime.
“With the introduction of the 2023 TP Rules, certain aspects of Malaysia’s new TP regime are becoming more similar to Singapore’s,” shared Adriana Calderon, Director – Asia and Malaysia, and Hong Chuan Tan, Director – Malaysia, Transfer Pricing Solutions Asia, in a webinar organised by the Singapore Chartered Tax Professionals. “
Yet, taxpayers cannot assume that the two TP regimes are the same as many nuanced differences, both in terms of actual TP rules and tax authorities’ administration, remain.”
Malaysia: Key Changes Arising from the 2023 TP Rules
The introduction of the 2023 TP Rules brings about several important changes to the Malaysia TP regime. Malaysian taxpayers should review and update their TP policies and TP documentations for the relevant YAs. Malaysian taxpayers looking to rectify prior year TP errors may consider the special voluntary disclosure programme available till 31 May 2024.
Understand the changes with the new transfer pricing rules in Malaysia.
We’ll discuss best practices for intragroup financing in the region, including regulatory and risk management issues and potential pitfalls.
Our expert panel will discuss the latest trends in intra group services in the Asia region and offer advice on how to develop effective management strategies
Looking for a solution to streamline processes for more efficient transfer pricing management?