Transfer Pricing In Commodities

Homing in on TP for commodity marketing and trading activities in Singapore, businesses should know that commodity marketing and trading activities involve a wide spectrum of activities, over and above the actual acquisition and sale of commodities. The crux of TP issues often lies with the functional analysis and characterisation of the commodity marketing and trading entity in Singapore.

“When comparing prices, bear in mind that indices indicate the price to the final customer and would be difficult to use for commodity marketing and trading entities that act as intermediary entities and do not sell to end customers,” highlighted Adriana Calderon, Director, Transfer Pricing Solutions Asia, as she shared her insights at an event by the Singapore Chartered Tax Professionals (formerly Singapore Institute of Accredited Tax Professionals).