IN order to tighten the TP regulations, the Malaysian
Revenue Authorities have introduced a new detailed form to be filled by transnational
companies.
The Malaysia’s
Inland Revenue Board (IRB) proposes to send the form to select taxpayers, and
the Form will have four parts. Apart
from giving details of the Malaysian company’s majority shareholder
and ultimate holding company, together with the associated companies and subsidiaries
with which it trades, the IRB has also stipulated that it requires a chart
of the entire global structure of the group of companies to which the taxpayer
belongs.
Complete details of transactions with related companies outside Malaysia are
also required to be given – including, not only stock, raw materials
and other tangible assets, but also such matters as royalties, management fees,
guarantees, research and development, and rent. Particulars of all loans to,
or borrowings from, related foreign companies are in another part of the form.
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