Impact of New Transfer Pricing Guidelines 2024 on Multinationals and Domestic Groups

INTRODUCTION

The Transfer Pricing (TP) Guidelines 2024 has introduced many changes to the TP compliance requirements such as the redefinition of the threshold for preparing Full Contemporaneous TP Documentation and Minimum TP Documentation and expansion of exemption criteria for preparing TP Documentation but requiring arm’s length justification documents. Onerous documentation requirement has been introduced for specific transactions such as business restructuring, intragroup services etc. The TP Guidelines has also introduced the simplified approach for low value-adding intra-group services

COURSE OUTLINE

What’s new in Malaysia TP Guidelines 2024

• Exemptions from preparing Contemporaneous TP Documentation (CTPD)

• Revised threshold for requirement to prepare CTPD

• Relaxation for minimum CTPD requirement

• Introduction of simplified approach for Low Value-Adding Intragroup services

• Updating benchmarking analysis in the course of an audit

• Business restructuring -robust analysis and documentation requirement

• Additional data, info and doc requirement under TP Rules 2023 including Schedule 1 and Schedule 2

• Case Study

Specific Documentation Requirements

• Business restructuring

• Intra-group services

• Intra-group financing transactions

• TP Policy

• Special Factor Analysis

• Case study

Is your TP Doc Contemporaneous?

• CTPD preparation deadline

• Dating of CTPD

• Completeness of CTPD

• Case Study

Is your TP Doc audit ready?

• Identify risk areas

• Calculation of TP adjustment, surcharge and additional tax payable