Transfer pricing

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)


Singapore’s excellent strategic location and globalised economy make it an attractive business hub for organisations looking to build their presence in Southeast Asia and Asia-Pacific.

If you are planning on doing business in Singapore, knowledge of the investment environment and information on legal, accounting and taxation framework are essential to keep you on the right track.

This guide will provide you with insights into the key aspects of investing and undertaking business in Singapore. It makes reference to some of the most common issues companies might face when expanding into the city-state.

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