Taxand Malaysia CCH Guide to Transfer Pricing
Taxand Malaysia CHH Guide to Transfer Pricing is designed to provide multinational companies with a practical and informative guide to manage transfer pricing risks. Taxand Malaysia provides an insight into the topics covered in their newly published guide.
There is no absolute rule in determining the right price on a transaction as reflected in the well-known phrase ‘transfer pricing is an art and not a science’. There are bound to be differences in the way taxpayers and tax authorities evaluate transfer pricing. With cross border transactions becoming increasingly common with the globalisation of businesses, tax authorities worldwide are stepping up efforts to protect their revenue base. This is evidenced with the introduction of transfer pricing rules and regulations around the world.
It is imperative for multinational enterprises to manage transfer pricing risks by developing sound transfer pricing systems and risk management strategies in order to avoid hefty tax penalties and adjustments that increase their effective tax rates.
The publication provides an explanation of the law and administrative practices on transfer pricing in Malaysia, Singapore, Thailand and Indonesia. There is also a chapter on Advance Pricing Agreements which discusses in detail how such agreements can be an alternative means of resolving or avoiding transfer pricing disputes.
A chapter in this book has been dedicated to the discussion of selected tax cases involving transfer pricing from the United Kingdom, Canada, Australia, India and the United States which provide readers with an understanding of the various transfer pricing issues that have been raised in these jurisdictions and how the judiciary has resolved such cases.
The increase in transfer pricing regulations and documentation requirements globally have resulted in difficulties for multinational companies to keep up with the compliance requirements especially when these companies have business operations in various jurisdictions. This book aims to assist multinationals to develop, implement and maintain a corporate transfer pricing policy. It also identifies the challenges in the application of the arm’s length principle and the transfer pricing methodologies.