Singapore: Expanded transfer pricing rules | KPMG | US

Singapore: Expanded transfer pricing rules

Singapore: Expanded transfer pricing rules

Recent legislative changes concerning transfer pricing follow the introduction of transfer pricing documentation rules in February 2018 and the release of transfer pricing guidelines by the Inland Revenue Authority of Singapore.

1000

Related content

Among the transfer pricing concepts are the following:

  • The arm’s length principle is aligned with the OECD standard, and the tax authority may make adjustments to related-party transactions if such transactions would not be entered into by unrelated parties under comparable circumstances.
  • The form of related-party dealings can be disregarded if inconsistent with the substance of the transaction or there is a lack commercial rationality (also known as “recharacterization”).
  • A 5% “surcharge” is to be applied to the amount of transfer pricing adjustments made by the tax authority.
  • Taxpayers must prepare and maintain transfer pricing documentation (pursuant to the transfer pricing documentation rules), and may be subject to penalties for failing to submit the documentation within 30 days of a request from the tax authority.

 

Read a February 2018 report [PDF 767 KB] prepared by the KPMG member firm in Singapore

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit