Transfer Pricing Compliance

General

With effect from Year of Assessment 2019 (YA 2019, for basis periods or financial years ended in 2018), the following companies are required to prepare transfer pricing documentation unless they are exempted:

a.  Companies with turnover of more than S$10 million per year, or

b.  Those companies which were required to prepare transfer pricing documentation in the previous basis period (hereinafter referred to as “financial year”).

The conditions for exemption from preparation of transfer pricing documentation are contained in the Income Tax (Transfer Pricing Documentation) Rules 2018 (“TP Rules”). Companies with turnover less than S$10 million for the current and previous two financial years and which have prepared TP documentation for the previous two financial years will be exempt from preparing TP documentation.

There are also exemptions for Companies that only have transactions with related entities (intercompany transactions) below specified thresholds.

If required to be prepared, the transfer pricing documentation must contain details prescribed by the TP Rules.

We can help you

K E Wee & Associates PAC and its affiliates provide a full range of services to assist companies in meeting their business and compliance requirements. Contact us today for how we can assist you in meeting the requirements.