On 19 Mar 2021, the Inland Revenue Authority of Singapore (IRAS) issued an e-Tax Guide “Transfer Pricing Guidelines Special Topic – Centralized Activities in Multinational Enterprise Groups”.

The e-Tax guide discusses the economic value contributions of centralized activities in Singapore and their importance to a multinational enterprise (MNE) group; and provides guidance on how to analyze such activities carried out in Singapore between related parties, the factors that may affect the transfer price (TP) for these activities and the transfer pricing methods that may be appropriate.

The e-Tax Guide is relevant to a business entity (including branches) incorporated or registered in Singapore and have centralization of activities within MNE group.