All related party transactions should be conducted at arm's length, ie as if parties were unrelated.

Contemporaneous transfer pricing document (TPD) is required from taxpayers if they meet any one of the conditions below:

  • Gross revenue for the financial year is greater than S$10 million; or
  • TPD was required to be prepared for the previous basis period

There are certain de minimis thresholds for specific transactions for preparing transfer pricing documentation as follows:

Category of related party transactions - Threshold (SGD) per financial year

  • Purchase of goods from all related parties - 15 million
  • Sales of goods to all related parties - 15 million
  • Loan to/from all related parties - 15 million
  • All other category of related party income or expenses - 1 million (per category of transaction)