For assessing the financial year ending in 2017, taxpayers with cumulative related party transactions exceeding S$15,000,000 in audited accounts are required to complete a form for reporting related party transactions.
Companies of all sizes — not just behemoths like Google and Facebook — are under increased scrutiny from tax authorities. We are in a time when corporate tax laws around the globe are evolving at a quick pace, and this understandably leaves many corporations uneasy and looking for clarity. Let’s look at two scenarios involving how a multinational might be taxed by two sets of tax authorities on the same income. Equipped with this knowledge, you may be able to avoid these kinds of pitfalls, or at least be prepared for the possibility that they may arise.
Under pressure to raise money, governments around the world, particularly in North America and Europe, are investing more resources into their taxing authorities to increase audits and enforce violations more rigorously, collecting money on transfer payments they judge as not meeting the standard.
This year, Singapore was ranked number one in ease of doing business in the East Asia & Pacific region. Unfortunately, with the introduction of some new transfer pricing guidelines, doing business in Singapore just became a little more complicated.