7 November 2016

For better assessment of companies’ transfer pricing risks and to improve on enforcement, companies must report certain details of related party transactions wef Year of Assessment (YA) 2018 to the Inland Revenue Authority of Singapore (IRAS).

Should the value of related party transactions (RPT) in the audited accounts for the financial year exceed S$15mil, a Form for Reporting Related Party Transactions (RPT Form) is to be submitted together with the submission of Form C. 

The value of RPT as disclosed in the audited accounts is the aggregate of:

• All amounts of RPT as reported in the Income Statement but excluding compensation paid to key management personnel and dividends, and
• Year-end balances of loans and non-trade amounts due to/ from all related parties.

For companies with cross-border related party sales or purchases of goods and services, the top five foreign related parties that it transacts with (by value of sales or purchases respectively) has to be listed together with entity details including entity names, countries, relationship and amounts transacted.

A sample copy of the RPT Form and a set of FAQs can also be found on the IRAS website. The actual RPT Form will be made available together with the YA 2018 Form C.

Source: IRAS