It sets out the standards and rules to be applied to the related party transactions (RPTs) for ascertaining arm’s length price as well as the types of records and documentations needed to be maintained by the taxpayers.
Under the guideline, taxpayers are required to prepare transfer pricing documentation at the time the RPTs are entered into. Strictly, TP documentation needs to be ready before the tax return submission.
In order to reinforce the preparation of quality and timely transfer pricing documentation by taxpayers, stricter new penalties are proposed in Budget 2021. These include, penalty on the failure to furnish contemporaneous TP documentation within the due date upon request by the IRB (fine between RM20,000 to RM100,000) and a surcharge of up to 5% to be imposed on TP adjustment. (with effect from 1 Jan 2021)
YYC Tax Guru & Tax Executive Director
-Licensed Tax Agent by Ministry of Finance
-Licensed GST Agent by RMCD & MoF
-Fellow Member of Chartered Tax Institute of Malaysia (CTIM)
-BBusCom (Monash), CPA (Aust.), C.A. (M), FCTIM
- He has been involved in the tax compliance and tax advisory works for more than 15 years in various industries ranging from manufacturing, trading (retail & business services), franchisor/ licensor, education, investment holding, investment dealing, forestation, agriculture, foundation, association and trade union.
- Active in giving tax related talks and seminars such as budget talk and tax updates seminar.
- Frequently invited by media such as Bernama and AiFM to share on tax topics.
- Topics of expertise include company tax planning, personal tax planning, tax investigation, Malaysian annual budget analysis, latest tax developments and other tax related topics.
YYC GST Consultants Sdn Bhd
Registration No. 20130143188 (1073010-M)