Download Centre
FOZL Company Brochure
FOZL Company Brochure
FOZL Company Brochure
Singapore Budget 2024
Monthly Newsletter
Definition of Related Parties in Transfer Pricing
Definition of Related Parties in Transfer Pricing Under Singapore’s corporate tax laws, the definition of “related parties” is provided under Section 2(1) 【1*】of the Singapore Income Tax Act (SITA) as follows: “A related party, in relation to a person【2*】, means any other person who, directly or indirectly, controls that person, or is controlled, directly or indirectly, by that person, or where he and that other person, directly or indirectly, are under the control of a common person” Below is the example of direct control, indirect control, and common control: The SITA does not specify any control or ownership thresholds for […]
Introduction to Transfer Pricing
Introduction to Transfer Pricing Transfer pricing (TP) is an accounting practice used to determine the prices of inter-company pricing transactions or arrangements between related parties. These can include transfers of intellectual property, tangible goods, services, loans or other financing transactions. Companies should keep in mind that the definition of “related parties” may vary between jurisdictions depending on the specific regulations and contexts. Under the Singapore Income Tax Act (ITA) section 2(1), “related party” is defined as when either party directly or indirectly controls the other, or they are under the common control of another party, whether directly or indirectly. The […]