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.
In this half-day course, the participants will learn how the MNEs are impacted by the recent transfer pricing developments and the practical strategies