Transfer pricing is an accounting practice by which inter-company generally makes reference to companies who are part of the same Group or related companies.
Over the years, Malaysia has become one of the fastest growing business hubs in the world because of her business friendly environment and central location. More than half of the world’s population lives within a 5-hour radius of Malaysia, and several business tycoons are looking to establish their companies on her soil.
Due to this, tax audit activities have intensified especially for Transfer Pricing. Tax payers who are involved in related company transactions must prepare “transfer pricing documents” which needs to be submitted to the tax authorities when requested.