Transfer pricing documentation is divided into “Full Transfer Pricing Documentation” and “Limited Transfer Pricing Documentation”.
Let’s find out what are the differences
between them.
1. Full Transfer Pricing Documentation
- Comprehensive service: Includes a full range of transfer pricing services, from planning and documentation to potential dispute resolution.
- Expert
involvement: Typically involves a team of transfer pricing experts who conduct in-depth analysis and provide strategic advice.
- Suitable for: Large multinational corporations with complex business structures and high-value transactions.
2. Limited Transfer Pricing Documentation
- Limited scope: Focuses on providing basic transfer pricing knowledge and tools to companies with simpler structures and lower-risk transactions.
- Self-service approach: Companies take responsibility for preparing transfer pricing documentation and conducting basic analysis.
- Suitable for: Smaller companies with fewer related party transactions and a lower risk of tax audits.
So, which TP documentation is required for your related company transactions❓
Let’s find out!!
- Company's annual income does not exceed RM25 million; or
- The total amount of related-party transactions between companies does not exceed RM15 million; or
- The total financial assistance between related companies does not exceed RM50 million.
If you fall under any of the above-mentioned TERMS,
you are only obliged to prepare LIMITED TRANSFER PRICING DOCUMENTATION.
