Updated: Sep 14
Income Tax (Transfer Pricing) Rules 2012
Under Rule 4(2) of the Income Tax (Transfer Pricing) Rules 2012, the contemporaneous transfer pricing documentation shall include records and documents that provide a description of the following matters:
organisational structure, including an organisation chart covering persons involved in a controlled transaction;
nature of the business or industry and market conditions;
the controlled transaction;
strategies, assumptions and information regarding factors that influenced the setting of any pricing policies;
comparability, functional and risk analysis;
selection of the transfer pricing method;
application of the transfer pricing method;
documents that provide the foundation for or otherwise support or were referred to in developing the transfer pricing analysis;
index to documents; and
any other information, data or document considered relevant by the person to determine an arm’s length price.
根据《2012 年所得税 (转让定价) 细则》第4（2）条]，同期转让定价文档应包括提供以下事项的记录和文件:
In layman's words, the Income Tax (Transfer Pricing) Rules 2012 mandate that Malaysian entities that conduct business with associated persons must compile contemporaneous Transfer Pricing documentation per the above requirements.
This applies to both cross-border as well as domestic transactions.
The Inland Revenue Board of Malaysia also published Malaysian Transfer Pricing Guidelines 2012 to explain the provision of Section 140A in the Income Tax Act 1967 and the Income Tax (Transfer Pricing) Rules 2012.
It governs the standard and rules based on the arm's length principle to be applied to transactions between associated persons.
The Transfer Price Guidelines 2012 provide additional clarification that the requirements for the preparation of contemporaneous transfer pricing documentation that are mandated by the TP Rules would be limited to the following:
for a person carrying on a business, where the gross income exceeds RM25 million, and the total amount of related party transactions exceeds RM15 million; or
in relation to financial assistance, where such financial assistance exceeds RM50 million (the Guidelines do not apply to transactions involving financial institutions).
用通俗的话说，《2012 年所得税 (转让定价) 细则》规定，与关联人士开展业务的马来西亚实体，必须按照上述的要求准备同期转让定价文档。
对于经营业务的人士，其总收入超过 2,500 万令吉，并且关联方交易总额超过 1,500 万令吉；或
Limited Transfer Pricing Documentation
Any person which falls outside the scope above:
may opt to fully apply all relevant guidance as well as fulfil all Transfer Pricing Documentation requirements in the Guidelines; or
alternatively may opt to comply with TP Documentation requirements under paragraphs 25.4(a), (d) and (e) only:-
Controlled transactions; and
In this regard, the person can apply any method other than the five described in the Guidelines, provided it results in or best approximates arm's length outcomes.
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