The Inland Revenue Board of Malaysia (IRBM) had recently announced new updates and changes to the Transfer Pricing Guidelines 2012 (“TPG 2012”). The Malaysian Transfer Pricing Guidelines explain the provision of Section 140A in the Income Tax Act 1967 and the Transfer Pricing Rules 2012. They govern the standard and rules based on the arm’s length principle to be applied on transactions between associated persons.
Currently, the Guidelines are being updated to reinforce the existing standard and reformatted on the website. The Guidelines will then be updated over time as required. The updated version of the TPG 2012 (“UTPG 2012”) has introduced changes to the following chapters:
- Chapter II – The Arm’s Length Principle (updated)
- Chapter VIII – Intangibles (updated)
- Chapter X – Commodity Transactions (new)
- Chapter XI – Documentation (updated)
The new or updated chapter can be found under ‘Updated version of Transfer Pricing Guidelines 2012’ while the remaining chapters can be found in the Transfer Pricing Guidelines 2012.