TP documentation for a dormant year
Our revenue dropped below S$10 million. Do we still need TP docs?
The situation
If TP documentation was required for the previous basis period, it may still be required for the current one even if revenue drops below S$10 million.
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
IRAS's rules look at both the current revenue test and whether documentation was required before. Check the exact wording in the IRAS TP guidelines. If documentation is still required, update last year's file rather than starting from scratch, and keep it ready by the filing date.
What to do
- Check prior year.
- Apply rule.
- Update docs.
- Keep.
We can do this for youTransfer pricing documentation: SGD 5,000