Many companies believe transfer pricing only becomes an issue when IRBM asks.
In reality, that’s usually when the problem starts.
Under Malaysia’s Transfer Pricing rules, all transactions between related parties must reflect arm’s length pricing as if the parties were independent.
If proper TP documentation is not available
during a tax audit, penalties ranging from RM20,000 to RM100,000 per year of assessment may apply.
⚠️ And here’s the risk:
IRBM does not wait for companies to “catch up”. Documentation is expected to be ready, complete, and defensible at the time of review.
- Rely on outdated or incomplete TP
files
- Assume past practices will be accepted
- Prepare documentation only after questions are raised
By then, exposure, costs, and stress are already high.
📢 Join YYC’s FREE Transfer Pricing Webinar and learn how to:
- Spot hidden TP risks in everyday transactions
- Know exactly when
TP documentation is required
- Strengthen your position before IRBM initiates a review
