“The fee stated herein is for 3 days package of MTPD workshop”
Taxpayers in Malaysia who have controlled transactions (e.g., buy or sale of goods, providing or receiving services) with associated persons (e.g., group of companies, common directors, partners and spouse/relatives of directors/partners) require to prepare transfer pricing documentation (TPD). LHDN mentioned in the TPD Flowchart that for persons who only engage in domestic controlled transactions, they do not have to prepare a TPD if it can be proven that any adjustments made will not alter the total tax payable or tax suffered by the related persons. But LHDN may still challenge the transfer prices during tax audit and the taxpayers still require to prove the transfer prices are at arm’s length with supporting documents like pricing policy and comparative data.
W.e.f. 1/1/2021, penalty of RM20,000-RM100,000 if you cannot provide transfer pricing documentation (any taxable period) to LHDN upon request within 14 days. However, your business is allowed to prepare Minimum TP Documentation (MTPD), if business annual gross income below RM25 million, and total related party transactions not exceeding RM15million per annum; or provision of financial assistance not exceeding RM50 million for non-financial institutions.
Brochure
— Course Fee: RM 1300.00 (Inclusive of 8% Service Tax) —
Module 1: Matters pertaining to intragroup services
- Analysis of document/information relating to services performed by the respective associated persons/group members
- Explain how the activities are carried out
- How to determine arm’s length price for intragroup services?
- Direct charge and indirect charge method
- Other factors to be considered, e.g. proof of provision of intragroup services and the competency in providing such service
Module 2: Sharing of expenses
- whether sharing of expenses consider as intra group service?
- Allocate expenses based on utilization during the relevant period
- Proof of such needs to share the expenses
- Closing the gap between written agreement and practice
- Demonstrating that the recipient have not been made to absorb a disproportionate share of the total costs of administration and management
Module 3: Financial Assistance
- Type of Financial Assistance
- Type of common financial interest in Malaysia
- Rules of substitution and imputation of Arm’s length Interest
- Practical Exercise
Module 4: Comparability Study
- Comparability factors
- Function and Risk of lender and borrower
Module 5: Transfer Pricing Methodologies for financial assistance
- Internal & External Comparable uncontrolled price (CUP) method
- How to determine the arm’s length interest rate for financial assistance
- Discussion
Module 6: Pricing policy
- Content of pricing policy
- Supporting documentation to support the setting of interest rate
- How frequent is the review of the pricing policy to be conducted
Module 7: Director’s loan/advances
- Determination of director’s loan/advances as financial assistance
- What is the arm’s length interest rate for financial assistance to/from director