Malaysia legislation
Section 40
Section 40
The principal Act is amended by inserting after section 71
the following chapter:
“Chapter 1a—Ruling advance Pricing arrangement 71A. (1) Subject to this section and any rules prescribed under this Act, on the application made to the Director General by any chargeable person who carries out a cross border transaction—
(a)
the Director General may enter into an advance pricing arrangement with that chargeable person; or
(b)
in the case where section 65a applies, the competent authorities may enter into an advance pricing arrangement,
Finance 25
in order to determine the transfer pricing methodology to be used in any future apportionment or allocation of income or deduction to ensure the arm’s length transfer prices in relation to that transaction.
(2)
An application under subsection (1) shall be made in the prescribed form and shall contain particulars as may be required by the Director General.
(3)
The transactions referred to in subsection (1) shall be construed as a transaction between—
(a)
companies one of which has control over the other; or
(b)
companies both of which are controlled by some other person.
(4)
in this section, “transaction” has the same meaning assigned to it under subsection 72(7).
(5)
in the case of a petroleum agreement, chargeable person referred to under subsection (1) shall refer to the person in that agreement that enters into a transaction with another company where it has control in accordance with subsection (3).”.
amendment of section 72A