Simplified TP documentation
Can small groups use simplified TP documentation?
The situation
IRAS provides simplified approaches for certain transactions, such as routine support services and some related party loans, and exemptions from documentation for some cases.
The law
- Secs 34D and 34F, Income Tax Act 1947: Related party transactions at arm's length; transfer pricing documentation when thresholds are met
What it means for you
Using a simplified approach can save cost, but each comes with conditions in the IRAS TP guidelines. Check eligibility each year because thresholds and conditions can change. Document why you chose the simplified approach.
What to do
- Check eligibility.
- Use simplified format.
- Keep.
- Review yearly.
We can do this for youTransfer pricing documentation: SGD 5,000