Transfer pricing (TP) is the setting of transfer prices for transactions relating to sales and purchases of goods, services, intangibles and financing provided between associated persons within a Group.
All related party transactions are required to be conducted at arm’s length prices, i.e. the prices set for transactions between associated persons should approximate the prices set between independent parties undertaking transactions under similar or comparable terms and conditions. The key challenge is firstly to set up the arm’s length transfer prices and to defend them against any challenges by the tax authorities. Internally within a group, the other challenge is managing the transfer pricing risks associated with tax planning and tax compliance.
Transfer pricing is complex and getting it wrong can be costly. With constantly changing tax legislation, the need for specialist tax advice has never been greater. Given the current situation where the tax authorities have provided the basic framework to implement transfer pricing in the country, taxpayers have no valid grounds for ignoring their responsibilities to comply with the transfer pricing regime.
Our transfer pricing unit offers a full range of transfer pricing services. This team of experienced tax and transfer pricing specialists will ensure that you receive the highest level of support in managing your transfer pricing affairs. In addition, our network of member firms in 130 countries across the globe and strategic competencies place us in the position to provide an all-rounded approach for your organisation’s transfer pricing needs.
The Malaysian Transfer Pricing Guidelines 2012 prescribes the following financial thresholds for preparation of a comprehensive set of transfer pricing documentation, i.e. Full Transfer Pricing Documentation:
Otherwise, taxpayers are allowed to prepare documentation that is less extensive, i.e. Limited TP Documentation.
We assisted a multinational corporation headquartered in Malaysia to prepare a three-tier documentation that complies with BEPs requirements, Country-by-Country Reporting Rules and Malaysian Transfer Pricing provisions.
The documentation comprises a Country-by-Country Report, Master File and Local File as stipulated under the guidelines of the Malaysian tax authorities.
We assisted a company to successfully defend its Transfer Pricing dispute against the Malaysian tax authorities.
The company was alleged to have not complied with the Malaysian Transfer Pricing provisions with regard to interest-free intra-group balances. We defended the company and secured a very favorable outcome.
We assisted a manufacturing company that was headquartered outside Malaysia to prepare Transfer Pricing documentation for their operations in Cambodia.
The documentation arose as a result of Transfer Pricing rules introduced recently by the Cambodian Government that required all companies to prepare relevant transfer pricing documentation to substantiate their controlled transactions. We worked with our Cambodia Office to successfully prepare the documentation that complied with the Cambodia Transfer Pricing Rules.
Large enough to cope, small enough to care
1 program with 12 months of unlimited questions on taxation.
News & Insights
Is Interest-free Intragroup Financing Acceptable? | May 2019
A Refined Approach on Transfer Pricing in SEA | February 2019
Updates on Malaysian Transfer Pricing Guidelines 2012 | August 2017
Country-by-Country Reporting (CbCR) in Malaysia | January 2017