Inland Revenue Board of Malaysia (IRB) issues Transfer Pricing form, namely “FORM MNE (1/2011) INFORMATION ON CROSS BORDER TRANSACTIONS”, to selected taxpayers to collate more information on cross border transactions undertaken by the taxpayers.
IRB said they are carrying out an exercise by issuing the TP form in order to help taxpayers comply with the arm’s length principle in related party transactions. Although some of this information may have been submitted through the Income Tax Form, the data required in the TP form are more detailed and relevant for transfer pricing risk assessment purposes.
Since the issuance of Transfer Pricing Guidelines on 2 July 2003, it appears the IRB is tightening its monitoring and review activities on cross border transactions by Malaysian companies.
Among information required in the TP form includes:
- A chart of the entire global structure of the group of companies to which the taxpayer belongs and companies with which the taxpayer carries out related parties transactions.
- Particulars of transactions with related companies outside Malaysia.
- Particulars of financial assistance with related companies outside Malaysia.
Selected taxpayers will receive a letter with the attached FORM MNE (1/2011) which can also be downloaded through LHDNM’s official website. The taxpayers are expected to return the completed form to IRB once it is duly filled up and signed off by the director or secretary of the taxpayers.
For enquiries , please email IRB at [email protected] or fax: 603-62010522.
Click here to download Form MNE (1/2011)
