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.
Singapore is often a preferred location for setting up headquarters as the door to conduct business in Asia. The IRAS has released its views on how Singapore HQ's should plan and implement their transfer pricing framework. Want to know more? Read our article with our views on IRAS TP Guidelines for Singapore HQs.
The Malaysian Finance Bill 2020 incorporates transfer pricing-related changes to the current Income Tax Act, 1967 (“ITA”). The changes permit significantly greater authority to the Malaysia Inland Revenue Board (“MIRB”) and re-emphasises the importance of transfer pricing compliance, with effect from 1 January 2021.
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.