Transfer pricing refers to the pricing of goods, services, and intangibles between related parties. The arm’s length principle has to be adopted for determining the pricing of transactions between related parties. Taxpayers should prepare and keep contemporaneous Transfer Pricing Documentation to show that their related party transactions are conducted at arm’s length.
Contemporaneous Transfer Pricing Documentation refers to documentation and information that taxpayers have relied upon to determine the pricing of a related party transaction, prior to or at the time of undertaking the transactions with related parties.
The IRAS also accepts Transfer Pricing Documentation as contemporaneous when it has been prepared not later than the due date of filing of the annual tax return for the financial year in which the transactions took place.
