Background An advance pricing arrangement (APA) is an arrangement between a taxpayer and the Director General of Inland Revenue (DGIR) or between Competent Authorities that determines the transfer pricing methodology to ascertain the prospective arm's length transfer prices of specified related party transactions between the taxpayer and its foreign affiliates over a specified period of time, under specified terms and conditions. APAs are intended to provide certainty to the taxpayers with regard to their transfer pricing policies and alleviate costly and time-consuming transfer pricing audits and examinations.
In addition to unilateral APA, IRBM also accept applications for bilateral APA (BAPA) and multilateral APA (MAPA) with its treaty partners. A permanent establishment/ branch in Malaysia may only apply for a BAPA/ MAPA through an application by its head office on behalf of the permanent establishment to the Director General of Income Tax (DGIR).
Further information on APA is outlined in the Income Tax (Advance Pricing Arrangement) Rules 2012, Income Tax (Advance Pricing Arrangement)(Amendment) Rules 2017 and Advance Pricing Arrangement Guidelines 2012.
Enquiries and submission of APA application Please address enquiries and submission of APA application to:
Department of International Taxation Headquarters Inland Revenue Board of Malaysia Level 12, Menara Hasil Persiaran Rimba Permai Cyber 8, 63000 Cyberjaya Selangor MALAYSIA Telephone: (+603) 8313 8851 Fax : (+603) 8313 7848 / (+603) 8313 7849 Email : LHDNM_APA@hasil.gov.my