On 29 May 2002, Malaysia updated its existing TP rules. The new rules are largely in line with the OECD Transfer Pricing Guidelines, but there are minor differences. For example, the new rules state that the arm’s length range is defined as the range between the 37.5th and 62.5th percentiles of a data set. Furthermore, according to the new rules, the tax authorities may make adjustments to the median or any point above the median, even if a taxpayer’s price is already within the arm’s length range where there is a lower degree of comparability or comparability defects in the dataset. “13. Adjustment by Director General (1) Notwithstanding any other provision under these Rules, where the Director General has reason to believe that any price including the rate of interest imposed or would have been imposed in a controlled transaction is not at arm’s length, ...
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