Transfer Pricing refers to the pricing of goods, services and intangibles between associated parties.
Associated parties; also known as 【related-party transactions】 occur when transactions are being carried out between two parties who are joined by a pre-existing business relationship or common interest, including transactions between the parent company and its subsidiaries.
In other words, either party control one another, or who are under the common control of another party, whether directly or indirectly. They include branches and head offices.
All related party transactions ("Controlled transactions") are required to be conducted at arm's length prices,
🙅♂️ Transfer price should not differ much from the market price.
🙅♂️ Thus, you are obliged to prove that there aren't any price gap when transactions were being made between related party.
NECESSARY TO PREPARE TRANSFER PRICING DOCUMENT?
If there are transactions between associated parties, you are OBLIGED to prepare the【Transfer Pricing Document】
as an prove that price of the transactions are within ARM'S LENGTH!
Most importantly!! It's for authorities' review purpose to ensure fairness and accuracy of transfer pricing among related entities!!
In 【The 2021 Budget】, Malaysia government have proposed stern rules over Transfer Pricing penalties and one of the notable ones falls on the Malaysian TP Guidelines where TP documentation must be submitted within 14 days instead of 30 days.
A penalty of between RM20,000 and RM100,000 for failure to submit the transfer pricing documentation.
Understand the concept of transfer pricing and the types of transactions between related parties which will have an impact on transfer pricing.
Learn different types of transfer pricing methodologies to be applied in determining the transfer price.
Understand which circumstances will be compulsory to prepare full-scope transfer pricing documentation and what contents to be included in the documents.
Understand the consequences of not preparing transfer pricing documentation in a timely manner and not being able to furnish the documents to the Inland Revenue Board (IRB) within the stipulated timeline.
Expertise and Experience - Our firm, YYC, has a 49-year history of helping clients take their businesses to newer heights. Our tax advisors have over 75 years of combined experience in the industry and have been involved in tax compliance and tax advisory work in various fields.
Proven Track Record - Our team is led by tax professionals who are bilingual (Mandarin and English) and regularly give tax-related talks and seminars that have benefitted over 12,000 individuals to date.
Passion To Help - After coming across so many frustrated business owners who had been paying loads of unnecessary tax for YEARS until they met us, we are very committed to tackling tax problems, hence that was why we developed this course to help companies impacted by the tightened Transfer Pricing compliance requirements.
Established in 1974, YYC is an Asian-grown accounting and advisory firm. Backed by our commitment to empower entrepreneurial success, YYC Group has served 20,000 clients across Malaysia and Singapore. Through our YYC Business School, we have also trained more than 140,000 participants with more than 6,000 workshops conducted to date.