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Transfer Pricing In Malaysia

Updated: Dec 3, 2022


What exactly is meant by "Transfer Pricing"?

The price of international and domestic intragroup transactions between connected parties that involve the transfer of goods, services, or intangibles is referred to as "Transfer Pricing."


Therefore, "Transfer Pricing" is an umbrella word for pricing these types of transactions.


"转让定价"究竟是什么?

关联方之间涉及货物、服务或无形资产转让的国际和国内集团内交易的价格被称为 "转让定价"。


因此,"转让定价"就是对这些类型的交易定价的一个总称。

Manipulation of transfer pricing, often known as "mispricing," "incorrect pricing," "unjustified pricing," or "non-length arm's pricing," can lead to tax avoidance or evasion.


对转让定价的操纵,通常被称为 "错误定价"、"不正确定价"、"不合理定价 "或 "非长度臂定价",可导致避税或逃税。


Legislation

In order to particularly address transfer pricing issues, Section 140A of the Income Tax Act 1967 (the "ITA") was amended in 2009 to include a provision that required taxpayers to determine and apply the price that would have been charged to controlled transactions.


The DGIR is authorised to make adjustments on controlled transactions of goods, services, or financial assistance based on the arm's length principle owing to Section 140A of the ITA.


The Administrative Requirements of the Application of Section 140A of the ITA and the Income Tax (Transfer Pricing) Rules 2012 are explained by the Transfer Pricing Guidelines 2012, which was released in July 2012 by the Malaysian Inland Revenue Board (MIRB). The OECD Guidelines are followed closely and used as a basis for these guidelines.


立法

为了特别解决转让定价问题,《1967年所得税法令》("ITA")第140A条于2009年进行了修订,加入了一项规定,要求纳税人针对受控交易,鉴定应采用的价格。


由于《1967年所得税法令》第140A条的规定,内陆税收局总监 (“DGIR") 被授权,按照公平交易原则对货物、服务或财务援助的受控交易进行调整。


马来西亚内陆税收局(”MIRB“)于2012年7月发布的《2012年转让定价指南》解释了适用《1967年所得税法令》第140A条和《2012年所得税(转让定价)细则》的执行要求。


经合组织所发布的指南,被密切关注并被用作上述指南的基础。



To put it more succinctly, taxpayers are expected to demonstrate that the transactions between related parties are carried out consistently with transactions involving third parties.


This means that the transactions must be conducted at arm's length.


Therefore, the taxpayer needs to prepare transfer pricing documentation to prove this fact.


简而言之,纳税人应证明关联方之间的交易是与涉及第三方的交易一致的。


这意味着这些交易必须是按公平交易进行的。


因此,纳税人需要按照要求准备转让定价文件,以证明这一事实。


As a result, beginning with the year of assessment in 2014, it turned into a need for all companies to affirm the availability of their transfer pricing documents to support any necessarily related party transactions.


Therefore, all taxpayers with any related party transactions will have to comply with the obligation to prepare and maintain their transfer pricing documentation when filing their income tax returns each year.


从2014年的评估年度开始,所有公司需要确认其转让定价文件的可用性,以支持任何必然的关联方交易。


因此,所有有任何关联方交易的纳税人,每年在提交所得税申报时,都得确保遵守准备和保留其转让定价文件的义务。


With effect from 1 January 2019

Under Section 140A (5A) of the ITA, “control” refers to persons one of whom owns shares of the other person or a third person who owns shares of both persons, where the percentage of the share capital held in either situation is 20% [Before - 50%] or more and—"


  1. the business operations of that person depending on the proprietary rights, such as patents, non-patented technological know-how, trademarks, or copyrights, provided by the other person or a third person;

  2. the business activities, such as purchases, sales, receipt of services, and provision of services, of that person are specified by the other person, and the prices and other conditions relating to the supply are influenced by such other person or a third person; or

  3. where one or more of the directors or members o