Transfer Pricing, which is the pricing of goods, services and intangibles between related parties, works via ‘the arm’s length principle’ in Singapore. This arm’s length principle is the internationally accepted standard adopted for transfer pricing between related parties, which means that the profits should be taxed where the real economic activities generating the profits are performed and where value is created.
‘Related parties’ including branches and head offices, are parties who control one another, or who are under the common control of another party, whether directly or indirectly.
Do you need help in working out the correct Transfer Pricing while trading in Singapore? Check out Singapore Company Incorporation.
