Summary of important changes on Transfer Pricing for 2021 in Malaysia

 C.F Ng & Co. Chartered Accountants 

The Finance Act 2020 was published on 31 December 2020 and has been operative since 1 January 2021. Amongst others, there are several new provisions found in the Finance Act 2020 that aim to strengthen the enforcement for transfer pricing (“TP”) compliance in Malaysia.

On another note, the Inland Revenue Board ("IRB”) has also updated the timeline for furnishing TP Documentation (“TPD”) in the Malaysian TP Guidelines ("MTPG") on 29 January 2021.The key changes that will take effect from 1 January 2021are ​included in the attachment.