When transfer pricing documentation is required
Our revenue is S$12 million with intercompany sales. Do we need TP documentation?
The situation
TP documentation is generally required where gross revenue exceeds S$10 million, or documentation was required in the prior period, and related party transactions exceed category thresholds.
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
At S$12 million, check each transaction category against IRAS thresholds. If any category exceeds its threshold, document it. Documentation is kept on file and given to IRAS within 30 days of a request.
What to do
- Confirm gross revenue.
- List related party transactions by category.
- Compare with thresholds.
- Prepare documentation by the filing date.
We can do this for youTransfer pricing documentation: SGD 5,000