The Inland Revenue Authority of Singapore released on March 19 an e-Tax guide on transfer pricing guidelines for multinational enterprise groups that have centralised activities through a “headquarters” entity in Singapore. The guide focuses on the economic value contributions of centralised activities performed by Singapore taxpayers and their importance for the multinational group. It includes guidance for functional analysis of related party activities in Singapore and on selecting appropriate transfer pricing methods.
Transfer pricing documentation is mandatory in Singapore for certain taxpayers that meet certain conditions. The transfer pricing
documentation is key to show evidence of how the price is in line with the arm’s length principle.
Are your controlled transactions in line with the transfer pricing legislation? Mistakes in pricing will roll over from year to year. It is crucial to identify mispricing as soon as possible to better manager the transfer pricing risk.
A US multinational company with subsidiaries around the world, including Singapore, recently prepared new US transfer pricing documentation.
The company applies their transfer pricing policies on a global basis. The US tax director instructs the Singapore tax director to use this documentation. Is the US documentation acceptable in Singapore?
Transfer Pricing is one of the key tax requirements to consider when expanding your business outside Singapore. Operations in more than one country (at least two countries) is sufficient for a business to be caught up under the transfer pricing regulations.