Are you owning a few companies?
Are these companies having a lot of related party transactions?
If YES, have you heard of one of the 🔥 HOTTEST tax issues 🔥 which is TRANSFER PRICING?
What is TRANSFER PRICING?
Transfer pricing is actually the transaction price between your related companies.
It cannot be ❌ TOO HIGH ↗️,
it cannot be ❌TOO LOW↘️,
it has to be just at the ✅ MARKET PRICE.
So if you have related party transactions, you have to prove that the transaction price is at the market price. But HOW?
........through TRANSFER PRICING DOCUMENTATION!
Is it a MUST to prepare Transfer Pricing Documentation? (what is the penalty?👀)
The Income Tax Act 1967 has been amended and the new Section 113B states that if you are not able to furnish a transfer pricing documentation, you could face a penalty of MINIMUM RM 20,000 a year for the years of which transfer pricing documentation is required.
And the MAXIMUM penalty could be UP TO RM100,000 a year! 😱😱
So how should you prepare a Transfer Pricing Documentation?
You have 2 options:
1. Engage a professional to prepare it for you.
2. DO IT YOURSELF!
If you feel that it is VERY EXPENSIVE for you to engage a professional to prepare the Transfer Pricing Documentation for you (current market price -RM10,000 & above per engagement), but at the same time you have NO IDEA how to do it yourself, I have a good news for you!
Do you know that you are NOT REQUIRED to prepare a “FULL” Transfer Pricing Documentation IF:
💥Total Annual Revenue of Your Company < RM25 million;
OR
💥Total Value of Related Party Transactions < RM15 million,
You can prepare a ✅ "LIMITED" Transfer Pricing Documentation! 🤩
Join our upcoming "Intensive 2-day Virtual Transfer Pricing Documentation Do-It-Yourself Training Course" to learn how to prepare your own LIMITED Transfer Pricing Documentation!
