IRAS has updated Singapore’s transfer pricing guidelines on 6 Jan 2015, which was last released almost 10 years ago. The guidelines explains IRAS’ transfer pricing programme and position regarding various transfer pricing matters. It consolidates the four previous e-Tax guides in transfer pricing
It is a timely move as the international tax scene and related party transactions has also grown complex over the years. Current issues such as BEPS (Base Erosion and Profit Shifting) have increasingly been a hot topic all over the world, which prompted OECD to revise its own guidelines, to which Singapore’s transfer pricing guidelines is generally based on.
Therefore, with this updated guidelines, businesses which have transactions with related parties will have clearer guidance in understanding and complying with Singapore’s transfer pricing requirements.