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.
Transfer Pricing is still a new discipline in Asia Pacific. However, Tax Authorities in the region are super committed to ensure compliance with the legislation.
Whether you are a transfer pricing newbie, a transfer pricing enthusiast or if you just want to understand what transfer pricing is all about, we have summarized below the key things you need to know:
If you are an Entrepreneur, Start-Up or SMEs don’t disregard transfer pricing and fall under the trap of thinking that transfer pricing
affects large MNEs only. Be proactive, and manage your transfer pricing compliance and risks at the beginning to avoid future
Transfer Pricing Solutions Asia can assist with practical and cost-effective solutions for Entrepreneurs, Start-Ups or SMEs.
The OECD guidance emphasised that, besides interest rates, all terms and conditions of the financing transactions (including the volume of debt) should be tested against 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?