On 4 January 2016, the Inland Revenue Authority of Singapore (IRAS) published the third edition of its transfer pricing guidelines. The main changes include:
- Guidance on the use of the cost plus method is expanded - covered in section 5 of the guidelines;
- The advance pricing agreement (APA) and mutual agreement procedure (MAP) processes are enhanced and clarified - covered in sections 8, 9 and 10; and
- It is specified that the arm's length principle should be applied when receiving a loan fr…