18 September 2017
With effect from Year of Assessment 2018, IRAS will be introducing a new Related Party Transactions (RPT) reporting requirement for companies. A new form (“RPT Form”) must be completed by companies if the value of RPT is in excess of S$15 million for the relevant Year of Assessment and submitted together with the Form C.
How do I determine if the value of RPT exceeds $15 million?
The value of RPT (as reported in the audited accounts) is the aggregate of the following:
1. All amounts of RPT as disclosed in the Income Statement, excluding compensation remunerated to key management personnel and dividends; and
2. Year-end balances of loans and non-trade amounts owing to/from all related parties.
What should be reported in the RPT Form?
The values of these categories of RPT are to be reported:
- Sales and purchases of goods
- Services income and expenses
- Royalty and licence fee income and expense
- Interest income and expense
- Other income and expense
- Year-end balances of loans and non-trade amounts
For further information, please refer to IRAS’ website.
Source: Inland Revenue Authority of Singapore