Although Malaysia isn’t a member of the Organisation for Economic Co-operation and Development (OECD), we are committed to supporting the international transfer pricing regime. We play an active role as observer and signatory to the Multilateral Competent Authority Agreement (MCAA). Furthermore, the OECD made an official announcement in March 2017 welcoming Malaysia as a Base Erosion and Profit Shifting (BEPS) Associate – monitoring and managing BEPS is central to effective policing of transfer pricing practices.
Discharging Malaysia’s role as a good global citizen that honours the international tax regime, Budget 2019 ushered in key changes impacting the transfer pricing environment. Moreover, there is a need to understand the impacts of the latest developments in areas such as BEPS, Country-by-Country Reporting (CbCR), Intra-Group Financing services, Analysis of Contractual Terms and Anti-Avoidance provisions, in order to enhance compliance with current Transfer Pricing regulations and policies. Otherwise, businesses risk punitive action by the tax authorities.
The Malaysian Institute of Accountants (MIA) has curated what you need to know about the contemporary transfer pricing landscape in its popular annual Transfer Pricing Conference 2019 – with the theme Navigating a New Landscape. The following is a flavour of what you can expect to stay up-to-date on transfer pricing:
- Latest Transfer Pricing Trends in Malaysia
Get a big picture view of Malaysia’s role and the development of transfer pricing in Malaysia.
- Intra-Group Financing Assistance/Services Issues
Understand the important elements and principles involved in computing the appropriate arm’s length interest rate for Intra-Group Financial assistance and services. Go deep into challenges arising from comparability factors, which need to be considered when searching for and analysing financial transactions and determining the arm’s length interest rate.
- Transfer Pricing Tax Compliance
This is the ideal forum for you to ask your questions on transfer pricing compliance, as this panel brings together tax authorities with tax practitioners and industry representatives to address the key issues affecting transfer pricing legislative compliance.
- Transfer Pricing Audit
This is a hot-button topic as the issues raised are challenging and may lead to potential disputes. This sharing session between tax practitioners and industry representatives seeks to promote a better understanding of transfer pricing audits and supports amicable resolutions.
- Recent Legal Cases
This session analyses the recent key transfer pricing decisions by the courts in Malaysia and the Commonwealth to discern the legal principles involved. The landmark transfer pricing cases selected for discussion are: Maersk Malaysia (related party management fees), PMP Auto Components (transfer pricing in a share sale transaction), Chevron Australia (interest payment in an inter-company loan arrangement), Cameco Corporation (commercial rationality of transactions) and SM (cost contribution arrangement vs intra-group services)
- CbCR and BEPS 2.0 – Transfer Pricing in a Digitalised World
As MIA is the digital champion for the profession, our conferences will highlight relevant digital impacts. This session provides updates on the newest digital-enabled developments affecting transfer pricing, specifically Country-by-Country Reporting (CbCR) and the Automatic Exchange of Information (AEOI). There will definitely be impacts to the local landscape as Malaysia has joined the Inclusive Framework to implement BEPS actions, including CbCR and the exchange of information.
The MIA Transfer Pricing Conference 2019 – Navigating a New Landscape will take place on 15 July 2019 (Monday) at the Kuala Lumpur Convention Centre. The Conference carries 8 CPE hours and HRDF claimable. The 8 CPE hours will also qualify as CPE Points for the purpose of application or renewal of tax agent licence under Subsection 153(3), Income Tax Act 1967. To register, contact Vino at 2722 9290 or email to [email protected].