Transfer Pricing

Tax

ARE YOU COMPLIANT WITH TRANSFER PRICING REQUIREMENTS?

On 29 May 2023, the Inland Revenue Board of Malaysia (“IRB”) had released new Transfer Pricing Rules (“2023 Rules”) that will be effective from Year of Assessment 2023. These Rules require taxpayers to date the Contemporaneous Transfer Pricing documentation (“CTPD”) and must be prepared based on the requirements set in the 2023 Rules. CTPD must be completed and dated before the deadline of furnishing the tax returns. Please be reminded that effective 1.1.2021, a fine of between RM20,000-RM100,000 and/or imprisonment of not more than 6 months (Section 113B) for failure to furnish CTPD within 14 days upon request may be imposed and a surcharge of up to 5% (Section 140A (3C)) on TP adjustments will be applied.

The abovementioned 2023 Rules highlight the importance given by IRB to ensure strict adherence to contemporaneous documentation on arm’s length pricing. As such, it is crucial to ensure that your documentation is dated and in compliance with the 2023 Rules to avoid potential scrutiny by the IRB.

How we can help?

Identifying potential challenges early and ensuring compliance with regulations imposed by the IRB are critical to managing transfer pricing risks effectively. Leveraging our integrated network of national and global transfer pricing specialists, we provide tailored support to address your unique needs. Our team collaborates closely with RSM’s international tax professionals worldwide, offering expertise that covers both industry-specific and transaction-based transfer pricing matters.

Our transfer pricing services include:

Preparation of Transfer Pricing Documentation: Local Transfer Pricing Documentation, including both Full and Minimal scope of as applicable.
Benchmarking Study: Identification of comparable companies by conducting searches, selecting external comparables, obtaining their audited financial statements, and performing financial analysis.
TP Health Check Analysis: Identifying and assessing potential exposures that management may have overlooked, while implementing proactive measures to mitigate risks.
TP Audit Assistance and Controversy Management: Liaising with the IRB on TP audits with an aim to resolve transfer pricing issues amicably on behalf of clients.
Negotiation and Preparation of Advance Pricing Agreements (APA): Supporting clients in the preparation and negotiation of unilateral, bilateral, or multilateral APAs with relevant tax authorities.

For any assistance in relation to transfer pricing services, please do not hesitate to contact our team or email us at [email protected]