Companies that consider using transfer pricing on their business normally do research and have a lot of questions to ask before they venture into transfer pricing services singapore.
According to IRAS and the transfer pricing advisory, transfer pricing documentation is important for tax payers.
The following are frequently asked questions concerning transfer pricing in Singapore, including the gst ask review Singapore.
What is Transfer Pricing?
This is the pricing of goods and services between different departments in the same company. It is mainly done to help lower the amount of tax paid by the company and also help in increasing profits for the company.
What is Transfer Pricing Documentation?
This refers to documentation and information that tax payers rely on to determine the price of a related transaction when it’s about time to engage in same agreements with related parties.
Is It Important to Prepare Transfer Pricing document for a financial year?
Yes. It is very important to prepare this document as a company in Singapore. The document is used every year for assessment.
What is the Requirement for Preparing Transfer Pricing Document?
A Singapore entity is required when preparing for this document. There are also requirements to be met when you want to prepare for this.
What is the Penalty of not preparing the Document?
The penalty for not preparing this documentation to the tax payer is a fine of up to SG$10,000.
What are the Transfer Pricing Methods?
Some of the methods include; resale price method, comparable uncontrolled price. Cost plus method, profit split method and finally transactional net margin method.