Transfer Pricing – Questions & Answers is a practitioner’s reference text which addresses the most common contentious issues relating to transfer pricing between related companies and the preparation of the needed transfer pricing (TP) documentation.
Answers to a total of 70 questions have been carefully chosen and embedded together with pragmatic advice and suggestions to assist the management of the company in making a better and informed decision with regard to TP matters. Transfer pricing at all times remain a challenging task. It represents an art and never a science. The skillful guidance provided through the Q&A will certainly support the management to strategise, revise and refine the pricing policies between related companies to meet the requirements of the law and avoid unwarranted tax penalties.
The selection of the appropriate TP methodology is crucial and important to explain, support and justify the business transactions between related companies are carried out at market value and in accordance to arm’s length principle. This practitioner text must be used concurrently with the ‘Transfer Pricing Methodology – Conceptual Framework’ in order to have a complete coverage and understanding of the five TP methodologies and their applications as suggested by the OECD model tax treaty.
The law is stated as at 1 June 2023.