The Inland Revenue Authority of Singapore (IRAS) has published an updated e-Tax Guide, Transfer Pricing Guidelines (Ninth Edition). The update includes the addition of a new paragraph 5.120, which is a frequently asked question (FAQ) relating to share-based compensation.
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Share-based compensation
5.120 Company A, a taxpayer in Singapore, provides services to its related party, Company B. Company A adopts TNMM with full cost mark-up of X% as the profit level indicator. The cost relat…