The revised Transfer Pricing Guidelines released by the Inland Revenue Authority of Singapore (IRAS) earlier this year introduced, amongst other things, the following key changes:
- the new explicit requirement that taxpayers prepare and maintain transfer pricing documention to substantiate that their related party transactions are at arm's length
- the concept of contemporaneous documentation.
Together with other changes, the revised guidelines represent a new milestone in Singapore's transfer pricing regime. It also reflects IRAS' continued commitment to ensure taxpayers maintain proper transfer pricing documentation and comply with the arm's length principle.
Meanwhile, the global community continues to weigh in on transfer pricing, with the Organisation for Economic Co-operation and Development (OECD) leading the way. For instance, in June, the OECD released the Country-by-Country Reporting Implementation Package to help facilitate the implementation of the latest transfer pricing standards.
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