What is a Transfer Pricing?
Transfer pricing refers to the intercompany pricing arrangement for the transfer of goods, services, and intangibles between associated enterprises. Two enterprises are associated if one or both the enterprises participates directly or indirectly in the management, control, or capital of the other. A taxpayer that is involved in transaction with its associated enterprise is required under the Malaysia transfer pricing rules and regulations to demonstrate that the transaction undertaken is conducted in an arm’s length manner and appropriate for tax purposes.
In recent times, the IRB intensified the level of transfer pricing audits in Malaysia. This is to scrutinize the transfer pricing arrangements between associated enterprises and ensure compliance. Furthermore, there is always a misconception that transactions between associated enterprises may not always reflect the dynamics of market forces as they have influence over one another. As such, the need for a transfer pricing specialist is vital for taxpayers undertaking intercompany transactions to conform and meet the requirements under the Malaysian transfer pricing rules and regulations.
Transfer Pricing – How can we help?
Our team of transfer pricing experts, including our founder who established the first transfer pricing practice in Malaysia, has vast experience providing holistic transfer pricing services to local corporations, government-linked companies (GLCs) and multinational enterprises.
Our transfer pricing services include:
- Transfer pricing documentation and benchmarking analysis
- Transfer pricing review
- Transfer pricing audit
- Price setting
- Advance pricing arrangement
- Mutual agreement procedure
- Realigning profits where value is created
- Acting as an advocate in resolving your transfer pricing audits
- Voluntary Settlement