The Malaysia Inland Revenue Board (MIRB) updated the form that is used by the tax authority to collect information from certain taxpayers relating to their cross-border transactions, for purposes of conducting a transfer pricing risk assessment.
Certain taxpayers will receive a letter from the tax authority with a Form MNE [Pin 1/2017] attached, and generally will be required to complete and submit the form within 30 days from the date of the letter.
In brief, the updated Form MNE [Pin 1/2017] now requires taxpayers to disclose the following information:
Although not a new section, the updated Form MNE now requires taxpayer to list the amounts transacted with both related parties inside and outside Malaysia—as opposed to only those related parties located outside Malaysia. Also, taxpayers need to disclose the amount of the contribution if they are a party to a cost contribution arrangement.
Release of the updated Form MNE signifies the MIRB’s continued effort in focusing on transfer pricing compliance. Taxpayers that are considered to be a “high risk” by the MIRB would be expected to be prioritized for a tax audit.
Read a March 2018 report [PDF 162 KB] prepared by the KPMG member firm in Malaysia
For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services practice:
Bob Kee | +60 37721 7029 | firstname.lastname@example.org
Chang Mei Seen | +60 37721 7028 | email@example.com
Ivan Goh | +60 37721 7012 | firstname.lastname@example.org
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