Transfer Pricing Documentation

​We have introduced transfer pricing in our previous post and now we will be walking through the documentation of transfer pricing. 

According to Transfer Pricing Rules, taxpayers with inter company transactions are required to prepare transfer pricing documentation on a contemporaneous basis. 
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Controlled Transactions

Section 139 of the ITA refers to 'control' as both direct or indirect control while controlled transaction is a transaction between two (or more) enterprises that are 'associated enterprises' with respect to each other.

Accordingly, to the widely used definition, enterprises are associated if:
a) An enterprise participates directly or indirectly in the management, control or capital of another enterprise or;
b) The same persons participate directly or indirectly in the management, control or capital of two enterprises. 
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Acceptability of Documentation

Submission of Transfer pricing documentation

​The Transfer Pricing Documentation is not required to be submitted with the annual Return Forms. However, the documentation should be made available within 30 days upon request by the IRBM.

Language

​Taxpayers are permitted to file their transfer pricing documentation in Bahasa Malaysia or English. Where supporting documents are in a language other than Bahasa Malaysia or English, a translation should be provided upon submission of the transfer pricing documentation.
 

Source:

• http://phl.hasil.gov.my/pdf/pdfam/MalaysianTransferPricingGuidelines2012.pdf
• http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=20&bt_posi=1&bt_unit=1&bt_sequ=3&bt_lgv=2

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