The Inland Revenue Authority of Singapore (IRAS) released updated transfer pricing guidelines on 2 January 2025.
The indicative margin for related-party loans has been revised to +170 basis points (1.70%) from +220 basis points (2.20%) for the period 1 January to 31 December 2025. This applies to loans not exceeding SGD 15 million using Risk-Free Rates (RFRs) as a base.
The SGD 15 million threshold does not apply to domestic related-party loans initiated on or after 1 January 2025, where neither party is engaged in borrowing or lending as a business.
The indicative margin is an optional alternative to performing detailed transfer pricing analysis for determining arm’s length interest rates.
