FAQs on transfer pricing updates that you do not want to miss! FAQs on transfer pricing updates that you do not want to miss! FAQs on transfer pricing 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,

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.

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