Malaysia: Finance Act 2020 – Transfer Pricing Provisions
Based on the 2021 Malaysian Budget Proposals which were announced by the Finance Minister on 6 November 2020, various changes to the Malaysian transfer pricing (TP) legislation were proposed.
Based on the 2021 Malaysian Budget Proposals which were announced by the Finance Minister on 6 November 2020, various changes to the Malaysian transfer pricing (TP) legislation were proposed.
This included the introduction of additional TP penalties and surcharge. In this regard, the Finance Act 2020 which sets out these legislative amendments, amongst others, has been gazetted on 31 December 2020 and came into operation on 1 January 2021.
In addition, the 2012 Malaysian Transfer Pricing Guidelines (TP Guidelines) were recently updated to reflect a reduced time frame for companies to submit the TP documentation upon request by the Inland Revenue Board (IRB). As such, this Issue of Tricor Insights highlights the recent changes to the Malaysian TP legislation and TP Guidelines. These changes impact Malaysian businesses which transact with related parties in the course of their business operations.
Discover more: Malaysia: Finance Act 2020 – Transfer Pricing Provisions
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