Services

The terms and procedures for valuing transactions involving related parties are referred to as transfer pricing. The sale or purchase of products, the rendering of services, the borrowing or lending of money, the usage or transfer of intangibles, etc. are examples of such transactions.

Due to a lack of independence in their business and financial relationships, related parties may not price their transactions to reflect market conditions. Because of this, their earnings and tax obligations may be distorted, especially if they are based in jurisdictions with various tax rates. This raises questions about whether the related parties are paying their fair share of taxes and whether they would be able to benefit from a tax advantage collectively.

The arm’s length principle, which has been approved internationally, is used by IRAS to make sure taxpayers transact with their related parties at prices that reflect independent pricing. IRAS will revise taxpayers’ profits upward in accordance with the Income Tax Act (ITA) if they have understated their profits and have not complied with the arm’s length principle.

Excellence Singapore can assist you with the transfer pricing documentation (local/master/country by country). When it comes to tax audits, we act as a transfer pricing consultant, supporting you in coordinating with the tax authorities and defending your transfer pricing reports. Advance Pricing Arrangements (APAs) or mutual agreement processes (MAPs) are negotiated with our assistance. We provide clients from a range of industries and jurisdictions both in Singapore and abroad.

We give businesses advice on the best ways to manage the transfer pricing life cycle. The planning, implementation, documentation, and monitoring phases make up the life cycle. While the majority of businesses concentrate on the first three phases, the evolving tax landscape has forced businesses to actively monitor their transfer pricing positions in order to manage new challenges like greater data gathering and information sharing among tax authorities. Companies must establish a well-defined approach to control and reduce their transfer pricing risks.