Transfer pricing essentially occurs when multinational companies (MNCs) enter into buy and sell transactions or send loans to their related companies. The concept of transfer pricing may also cover the situation in which a parent company in Singapore pays management...
As multi-national companies transact or engage in international trade transactions between their parent and its related entities, such related party transactions are subject to tax authority’s scrutiny based on what we call the arm’s length principle, a concept that...
Today, as businesses grow in complexity along their value and supply chain, they look to countries with cheaper resources or where there could be more favourable tax incentives or countries with low tax rates. Hence, as a business owner, it is essential to understand...
A common question is, “when does transfer pricing occur.” It occurs typically when multi-national companies enter into sale and purchase transactions with their related companies, or loan to related companies. It can be also a situation, when a Singapore parent...
Comprehensive anecdotal and academic evidence reveals that multinational enterprises (MNEs) transfer income from high-tax countries to low-tax jurisdictions to reduce their corporate tax burden. Political and public debates on the topic were recently reignited by the...
Dealing with base erosion and profit shifting presupposes that it is known what this is. The concept of value creation claims to provide an answer as to where profits should be taxed and, therefore, when the tax base is being shifted. The OECD introduced value...
