Effective 1 January 2021, it is mandatory for taxpayers to prepare and maintain contemporaneous Transfer Pricing (TP) documentation. The TP documentation must be prepared in the format depicted in the TP legislation and guidelines 2012.
Failure to furnish TP documentation within 14 days upon request by the tax authorities will result in a penalty ranging from RM20,000 to RM100,000 or prison term up to 6 months or both.
Therefore, it is imperative that any Company who has business transactions or financing arrangements with its related parties, prepare such TP documentation which should be in the format required by the Transfer Pricing Guidelines 2012 issued by the LDHNM.
To obtain a copy of our writeup on Latest Update TP Guidelines.