If you operate in Singapore, you need to know that 2019 is the first year of mandatory transfer pricing documentation in that country. This post addresses the new requirements and provides an overview of transfer pricing concepts.
The Inland Revenue Authority of Singapore has clarified its transfer pricing guidelines related to service companies. This post provides a summary of the clarifications and gives a brief description of cost-plus mark-up taxation.
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.