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Frequently asked questions (“FAQs”) on transfer pricing (“TP”) updates that you do not want to miss!

We strongly encourage you to spend a few minutes going through the FAQs attached in this email if you are a Malaysian taxpayer who is engaged in a related party transaction (“RPT”) / controlled transaction.

The FAQs are intended to provide a general overview of the TP changes proposed in the Finance Bill 2020 following the tabling of the 2021 Budget in November 2020. The introduction of new provisions in the Income Tax Act 1967 (“ITA”) relating to TP re-emphasizes the importance of TP compliance.

The relevant new provisions discussed in the FAQs are in respect of the following:

  • Failure to furnish contemporaneous TP documentation on time;
  • Power to disregard structure in a controlled transaction; and
  • Surcharge on TP adjustment.

With the proposed introduction of new provisions in the ITA relating to TP, complying with TP requirements in Malaysia is no longer an option as taxpayers could possibly be exposed to severe penalties. Therefore, it is important for taxpayers to maintain contemporaneous and comprehensive documentation (including the relevant source records) to defend their position during a tax audit.

The article can be accessed via the above link.

Should you have any questions or require further clarification, please do not hesitate to contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organisation.

Regards,

Bob Kee
Executive Director
Head of Transfer Pricing 

Chang Mei Seen
Executive Director
Transfer Pricing 

Ivan Goh
Executive Director
Transfer Pricing 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

For more information on our core service offerings, please contact:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020
Long Yen Ping
Executive Director –
Head of Global Mobility Services yenpinglong@kpmg.com.my
+ 603 7721 7018
Bob Kee
Executive Director –
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029
Ng Sue Lynn
Executive Director –
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271
Soh Lian Seng
Executive Director –
Head of Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019
 

Outstation Offices

Evelyn Lee
Executive Director –
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)
Regina Lau
Executive Director –
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)
Titus Tseu
Executive Director –
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)
Ng Fie Lih
Executive Director –
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)
Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)