Malaysia has well-defined TPD requirements. Preparing contemporaneous TPD by companies with controlled transactions is required by S140A and S139 of Income Tax Act 1967. These requirements are explained in detail in the Malaysia Transfer Pricing Guidelines 2012. The new Malaysia Income Tax (Transfer Pricing) Rules 2023 (which revoked Transfer Pricing Rule 2012)
requires that contemporaneous TPD must be prepared prior to the date for filing tax return and the date of preparation must be stated on the TPD. Failure to comply these requirements attract penalty ranging between RM20,000 to RM100,000 per company for each year of assessment and imprisonment of directors for a term not exceeding six months.
Gather data through digital communication, meetings and a field visit at the client’s business premises. Clients will be guided to provide us with the relevant information which are essential in producing a quality TPD.
Upon identifying the key issues, we will conduct an analysis and recommend solutions to minimise your TP risk. Are you having the relevant documents to support your arguments scripted in the TPD?
We will evaluate comparables to your controlled transactions and produce a benchmarking analysis to assist in your arm’s length price.
A draft is produced for you to confirm the factual information.
Upon your confirmation of the draft, a final report is produced for your retention which can be forwarded to IRBM upon request.