The Inland Revenue Authority of Singapore (IRAS) updated its Transfer Pricing guidance webpage on 14 June 2024, including new guidance in regard to related party loans. This includes the following:
Related Party Loans
Applying the arm's length principle, the interest rates for related party loans should reflect the interest rates charged between unrelated parties for similar loans under similar circumstances.
For a related party domestic loan entered into prior to 1 Jan 2025, if the lend…