The Covid-19 pandemic has triggered the most severe recession in 2020 and is causing enormous damage to the world economy. The economic downturn will impact a group’s transfer prices, analysis and documentation, more so with the BEPS Action Plans in place and the high level of transfer pricing scrutiny across the globe. A few months ago, tax and transfer pricing practitioners (including our firm) provided feedback on the potential measures for the Inland Revenue Authority of Singapore (IRAS) to consider as taxpayers in Singapore keep facing uncertainty on how to manage their transfer pricing risks as a result of COVID 19.
Check out our TP and COVID-19 video series below. If you can't find the help you need, please email
us and
let us know the kind of COVID-19 and TP information you would like to see.
An interactive and informative webinar ideal for CFOs, tax managers and finance managers with multinational or domestic companies Malaysia
to better understand the implications of Covid-19 based on OECD guidelines.
Can mark up be reduced? Can the service be suspended? Benefit test issues if services provided remotely? Can abnormal expenses be excluded?
Can the royalty be suspended? Can the royalty be reduced? Issues with service provider?
Why high risk and why attention? Because a contract is sufficient to originate the transaction. As a result tax authorities are experiencing tax leakages as a result of excessive interest expenses deduction and excessive interest income place in low tax or no tax countries.
What is the impact of COVID-19? Need to modify price of transaction? Need to modify contracts? Need to modify supply chain? Need to perform end of year adjustments? Need to adjust transfer pricing documentation? Need to adjust benchmarking?
