Cyberjaya, 10 August - In line with the introduction of the newly gazetted Income Tax (Transfer Pricing) Rules 2012 and Income Tax (Advance Pricing Arrangement) Rules 2012, the Inland Revenue Board of Malaysia has issued a new Transfer Pricing Guidelines and Advance Pricing Arrangement Guidelines. While the Rules cover the application of Sections 140A and 138C of the Income Tax Act 1967, the Guidelines are intended to explain administrative aspects of the Rules. 

While the issue of transfer pricing is more prevalent within multinational companies, it should be noted that Section 140A not only covers cross-border transactions but also transactions between related companies within Malaysia. In considering the burden of compliance for Malaysian taxpayers, the Guidelines has introduced thresholds which exclude certain categories of taxpayers from its requirements. It is, however, advisable for all taxpayers involved in transactions with related parties to maintain proper records.