According to the Inland Revenue Authority of (“IRAS”) Singapore, Transfer Pricing is the pricing of goods, services and intangibles between related parties. The “arm’s length principle’ should be adopted for transfer pricing between related parties.
Transfer pricing is a key consideration in today’s business as over two-thirds of world trade today involves multinational enterprises, and well over 50% of world trade comprises related party transactions. And with Singapore being the economic hub of Asia, almost every big conglomerate has a presence here.
Why engage Singapore Tax Accounting Services
Increasing cross-border trade makes Singapore’s transfer pricing regime a very important consideration, and Singapore Tax Accounting Services is well-placed with its team of professionals, to make matters easy for you.
To learn more and understand how it is implemented in Singapore, take a look at our quick overview on how transfer pricing works in Singapore.
The onus is on taxpayer to file correctly
Getting the help of experts like us is also necessary in Singapore, where the onus is on taxpayers to prepare and keep contemporaneous transfer pricing documentation to show that their related party transactions are conducted at arm’s length.
Our regional presence
STA tax experts are well-versed in transfer pricing regimes across jurisdictions, and are best placed to guide you on what transfer pricing documentation to prepare, and how to prepare it. Our domain experts also know how IRAS defines ‘related parties’ and how it applies the ‘arm’s length principle’.
In Singapore, related parties are parties who control one another, or who are under the common control of another party, whether directly or indirectly. They include branches and head offices. And the arm’s length principle is the internationally accepted standard adopted for transfer pricing between related parties, which means that the profits should be taxed where the real profit-generating economic activities are performed and where value is created.
Get assistance with transfer pricing in Singapore
Engage our Singapore transfer pricing experts to know how IRAS define ‘related parties’ and how it applies the ‘arm’s length principle’.