5 Reasons You Should Outsource Transfer Pricing
Transfer pricing has become more important with time because many businesses operate in different countries.
As a result, there is a greater demand among companies to professionally handle transfer pricing in Malaysia.
Since transfer pricing is a highly specialized part of a business, it is important to consider several different aspects of accounting procedures to prepare a transfer pricing document.
The most efficient and reliable way of preparing the transfer pricing document and ensuring compliance with regulations is to outsource transfer pricing in Malaysia so that professionals and experienced accountants handle this procedure.
If you are still not sure about whether you should outsource transfer pricing, keep reading this article to get familiar with the top 5 reasons you should outsource transfer pricing in Malaysia.
Reason # 01 – Lack of Experience in Transfer Pricing
If you are not sure about the rules and regulations related to transfer pricing and the standards of creating the transfer pricing document, you should consider hiring experts and professional accounting services to handle this critical business function.
It is not possible to learn all about transfer pricing in a short period of time, so it is better to outsource these services.
Moreover, letting professional accountants handle procedures like evaluating transfer pricing and filing the relevant records makes it easier to significantly reduce the chances of facing legal penalties due to non-compliance.
Reason # 02 – Prepare Transfer Pricing Document
The transfer pricing document should be prepared months in advance to make sure you are ready to submit it along with the income tax return. Otherwise, it can adversely impact your compliance with the law and the overall working of the business.
Business owners and managers have to focus on various different core business activities. As a result, they cannot personally handle the processes like creating the transfer pricing document and many other accounting functions.
Therefore, businesses should outsource transfer pricing and accounting services in Malaysia to let the experts with the required knowledge and skills handle procedures like transfer pricing documentation. Such services consider all the relevant taxation laws and standard procedures to provide the best results.
Reason # 03 – Choose a Suitable Transfer Pricing Method
It is common for companies to be unsure about the suitable transfer pricing method for their type of business. If you choose the improper technique, everything you do after that will be flawed or likely to be inconsistent with the legal rules and regulations.
As a result, the transfer pricing document will be inadequate. It is a frequent presumption that if you are unsure which approach to employ or why you choose that way, you should outsource the transfer pricing in Malaysia.
Reason # 04 – Thorough Analysis
Although some tax agents are familiar with transfer pricing, they lack access to the information needed to complete the process through economic analysis. If this is the case, you can easily outsource the financial analysis to professional accounting services in Malaysia.
Professional accountants can easily facilitate companies in data organization, benchmarking analysis, and draft and final reports.
The tax agent or an accountant can handle the entire process for you and hand over the appropriate paperwork at the end, including the transfer pricing document.
Reason # 05 – Keep up with Changing Requirements
In certain circumstances, multinational enterprises (MNEs) would claim to have complete transfer price documents from their parent business.
However, the organization’s branches can also fulfill this procedure. Because of the worldwide significance of transfer pricing, there have been various regulatory revisions.
Consequently, it’s crucial to stay up to date on the current norms and regulations to construct trustworthy transfer price paperwork.
Frequently, the tax agent or public officer and the subsidiary or parent firm are at odds about the specific rules of transfer pricing.
Therefore, to avoid any complications, it’s advisable to rely on accounting services in Malaysia to handle procedures like transfer pricing and let the professionals handle potential problems.
To sum it up, you should outsource transfer pricing in Malaysia if:
- You do not have experience dealing with transfer pricing.
- Your company has not prepared a transfer pricing document before.
- Your company is part of an MNE and wants to prepare a transfer pricing document.
- You want to rely on experts to choose a suitable transfer pricing.
- You want a thorough financial analysis for the preparation of the transfer pricing document.
The bottom line is that your first preference should be relying on professional accountants and accounting services in Malaysia to handle important procedures like transfer pricing because it is a complicated procedure.
A wide range of rules and regulations affect transfer pricing and the creation of transfer pricing documents, so by outsourcing it, you can focus on other business activities.