IRAS has issued an updated Transfer Pricing (TP) Guidelines (sixth edition) on 10 August 2021 which enhanced the TP documentation requirements. The new legislation imposes mandatory TP documentation for companies with gross revenue greater than SGD10 million. Taxpayers are exempt from preparing TP documentation for the transactions undertaken with their related parties in a basis period when those transactions come within any of the cases specified in Rule 4 of the TP Documentation Rules:
- Related party domestic transactions subject to same tax rate.
- Related party domestic loan
- Overseas related party loan not exceeding SGD 15 million of which indicative margin is applied
- Routine support services of 5% cost mark-up is applied
- Related party transactions not exceeding the following threshold:
How Nexia Singapore PAC helps:
| Category of transactions | Total Value SGD |
| Loan given / availed | 15 million |
| Services rendered / availed | 1 million |
| Royalty Paid / Received | 1 million |
| Rental Paid / Received | 1 million |
| Grant of a guarantee by / to | 1 million |
| Any other transaction (Income / Expenses) | 1 million |
- User-friendly interface with Preparation of transfer pricing documentation and transfer pricing audit defense
- Transfer pricing consultancy and advisory
- Assistance in managing transfer pricing audits
Develop an appropriate transfer pricing model