New to Synergy TAS ?
Transfer Pricing Documentation Starts Jan 2021
Compulsory Transfer Pricing Documentation ? 2021 is finally here, this new rule starts 1 Jan 2021. Transfer Pricing documentation is not new in Malaysia. But “Compulsory” is a new addition. What is so significant about this? Well in your tax return for, IRB wants you to tick whether you prepare the documentation or not.
As usual, those who don’t got a high chance to get a visit from tax audit team. Not something we all want to add into our already busy work calendar in 2021. If you are new to Transfer Pricing, talk to a qualified tax adviser on this. Access whether you need to prepare the documentation, and how much they will charge for it. The average fee we hear for simplified TP documentation is RM3k and above. Negotiate, negotiate if you must for a good price.
IRB did not publish guideline in 2020. The latest would be 2019, here’s the reference material you can use to understand how TP works.
There is a new section being added to Income Tax Act 1967 especially on “Failure to Furnish Comtemporaneous Transfer Pricing Documentation”
The Finance Act 2020 was gazette just before the new year (31 December 2020), with effective date of 1 January 2021. 😅
There are two very important power tax authority now has. They make transfer pricing so important effective from 1 January 2021.
Knowing how IRB will conduct their Transfer Pricing is important. It is like a student sitting for the exam, this audit framework is akin to the exam syllabus 😁. Knowing the syllabus you will be well prepared and ready when the audit letter arrived. 😇
“Renovation & Refurnishment is one of the most exciting tax deduction available in 2020/2021. We are looking at RM 300,000. That’s a big sum to claim 🥰. No more guessing required. the gazette order has been published [PU(A) 381/2020] just before the new year. There is some bad news to this.