The Transfer Pricing Agreement is essential for multinational companies operating in Malaysia to document and regulate their intercompany pricing arrangements. This document is required when related entities engage in cross-border or domestic transactions involving goods, services, intellectual property, or financing arrangements. It ensures compliance with Malaysian transfer pricing regulations, particularly the Income Tax Act 1967 and Transfer Pricing Rules 2012, while also adhering to international standards such as OECD guidelines. The agreement becomes necessary when companies need to demonstrate to Malaysian tax authorities that their related party transactions are conducted at arm's length prices, helping prevent tax adjustments and penalties. It typically includes detailed pricing methodologies, documentation requirements, and compliance procedures specific to the Malaysian regulatory environment.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of the related parties entering into the agreement, including their corporate details and relationship
2. Background: Context of the agreement, nature of business relationship, and purpose of the transfer pricing arrangement
3. Definitions: Key terms used throughout the agreement, including technical transfer pricing terminology
4. Scope of Agreement: Details of transactions covered, products/services involved, and territorial scope
5. Transfer Pricing Methodology: Agreed method(s) for determining transfer prices (e.g., CUP, Cost Plus, TNMM)
6. Pricing Terms and Conditions: Specific pricing formulas, calculations, and adjustments
7. Documentation Requirements: Required transfer pricing documentation, records maintenance, and reporting obligations
8. Review and Adjustment Procedures: Processes for periodic review and adjustment of transfer prices
9. Compliance Requirements: Obligations to comply with local and international transfer pricing regulations
10. Term and Termination: Duration of agreement and circumstances for termination
11. Dispute Resolution: Procedures for resolving disagreements related to transfer pricing
12. Governing Law and Jurisdiction: Application of Malaysian law and jurisdiction
1. Intellectual Property Rights: Required when IP transfers or licenses are part of the arrangement
2. Cost Sharing Arrangements: Needed when parties share development costs or risks
3. Advance Pricing Arrangement Terms: Include if an APA has been or will be sought from tax authorities
4. Force Majeure: Provisions for extraordinary circumstances affecting pricing arrangements
5. Confidentiality: Special confidentiality provisions beyond standard terms
6. Currency and Exchange Rate Provisions: Required for cross-border transactions with significant currency exposure
7. Customs Valuation Alignment: Needed when transfer pricing impacts customs valuations
8. Business Restructuring Provisions: Required when agreement covers business restructuring activities
1. Schedule A - Covered Transactions: Detailed list and description of all controlled transactions covered by the agreement
2. Schedule B - Pricing Methodology Details: Detailed explanation of pricing calculations, formulas, and benchmarking analysis
3. Schedule C - Documentation Requirements: Specific documentation templates and requirements for compliance
4. Schedule D - Functional Analysis: Analysis of functions performed, risks assumed, and assets employed by each party
5. Schedule E - Comparable Companies: List of comparable companies used in benchmarking study
6. Appendix 1 - Financial Adjustments: Procedures and formulas for making financial adjustments
7. Appendix 2 - Reporting Ƶ: Standard templates for periodic transfer pricing reports
8. Appendix 3 - Organizational Charts: Corporate structure and relationship between parties
Find the exact document you need
Agreement For Avoidance Of Double Taxation
Malaysian-governed bilateral treaty preventing double taxation between Malaysia and another contracting state, establishing comprehensive tax treatment frameworks and cooperation mechanisms.
Download
Income Tax Rental Agreement
A Malaysian rental agreement that specifically addresses income tax obligations and compliance requirements under Malaysian tax law.
Download
Transfer Pricing Agreement
A Malaysian law-governed agreement establishing transfer pricing arrangements between related entities, ensuring compliance with local regulations and OECD guidelines.
Download
Tax Sharing And Funding Agreement
A Malaysian law-governed agreement establishing tax sharing and funding arrangements between related entities, including tax allocation and payment mechanisms.
Download
Double Tax Avoidance Agreement
A Malaysian law-governed bilateral treaty preventing double taxation between Malaysia and another contracting state, establishing comprehensive tax treatment frameworks and dispute resolution mechanisms.
Download
Voluntary Withholding Agreement
A Malaysian law-compliant agreement for voluntary income tax withholding between employer and employee.
Download
Tax Allocation Agreement
A Malaysian law-governed agreement that establishes the framework for allocating tax obligations and benefits among corporate group members.
Download
Tax Indemnification Agreement
A Malaysian law-governed agreement establishing tax indemnification obligations between parties, defining covered tax liabilities and claim procedures.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)