
CPD EVENTS
INTRODUCTION
The 190-page Transfer Pricing Guidelines published on 24th December 2024 comprise of 11 chapters. Tax and finance professionals must take note of the salient features on immediate basis given most of the changes are effective from the year of assessment 2023. Concurrently, the Transfer Pricing Audit Framework is also revised effective from 24th December 2024 with insights on the application of the RM20,000 to RM100,000 penalty for failure to prepare TP documentation on contemporaneous basis, alongside the surcharge for any TP adjustment.
This webinar is well-positioned to provide tax and finance professionals across Malaysia to be well-informed of the key technical developments arising from the transfer pricing guidelines and audit framework, and its practical implications on businesses.
COURSE OUTLINE
Session 1 – Overview
-
Key concepts in Transfer Pricing (TP).
-
Definition of ‘control’ and its implications on private owned companies (e.g. common director companies) and Joint Venture arrangements .
-
Understanding the thresholds for exemption from preparation of full Transfer Pricing Documentation (TPD).
-
Minimum TPD : permissibility & pitfalls to avoid.
-
Case Studies.
Session 2 – Documentation Aspects
-
New Arm’s Length Range.
-
Computation of median and its significance.
-
Contents of TPD (Full vs Minimum).
-
Highlight of key steps in comparability analysis, with emphasis on new requirements provided for in the Guidelines.
-
Comparative analysis with the predecessor TP Guidelines ; with an emphasis on ‘what has changed’.
Session 3 – Intragroup Services & Low Value Adding Services
-
Permissibility to use the pre-determined 5% mark-up.
-
Understanding the exclusions.
-
Implication on inbound service charges (e.g. from overseas parent entity).
-
Dealing with pass-through costs.
-
Principles applicable for deductibility of the intragroup service costs.
-
Case Study.
Session 4 – Intangible Property & Restructuring
-
DEMPE requirement.
-
Case studies on royalty payments and advertising, marketing, and promotional (“AMP”) expenses borne by Malaysian manufacturers and distributors.
-
Tax and transfer pricing implications arising from change in functional profile and/or pricing policy, aka. restructuring.
Session 5 – Financing Arrangements
-
TP documentation requirement for financing transactions.
-
Dealing with interest-free advances.
Session 6 – Dealing with TP : Centric Tax Audits
-
TP adjustments and surcharge.
-
Can a TP adjustment lead to both 5% surcharge and the Section 113 (2) penalty?
-
Satisfying the ‘contemporaneous’ definition to avoid the RM20,000 to RM100,000 penalty under Section 113B.
-
Justification for loss-making years or below arm’s length range: common mistakes to avoid.
-
Tips for effective management of TP-centric tax audits.
-
Voluntary disclosure for TP matters.