FEEDBACK / COMMENTS ON

FORM C, YEAR OF ASSESSMENT 2022

– TRANSFER PRICING RELATED
DISCLOSURE

6 October 2022

Prepared by:
Technical Committee – Transfer Pricing
Chartered Tax Institute of Malaysia (CTIM)
 FEEBBACK/COMMENTS ON FORM C, YA 2022 - TRANSFER
PRICING RELATED DISCLOSURES

CONTENTS

No. Issues Page No.

1. F8 - Part A & B – Extract of Form C, Year of Assessment (YA) 2022 1-2

2. F8 - Part A - Items 2, 3 and 4 of the Form C - Characterisation 2-3

 FEEDBACK/COMMENTS ON ON FORM C, YA 2022 – TRANSFER
PRICING RELATED DISCLOSURES

Page 1 of 3
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450
Kuala Lumpur
Tel: +603-2162 8989 Fax: +603-2162 8990, +603-2161 3207 Email: secretariat@ctim.org.my, technical@ctim.org.my
 FEEDBACK/COMMENTS ON ON FORM C, YA 2022 – TRANSFER
PRICING RELATED DISCLOSURES

FORM C, YA 2022 - TRANSFER PRICING RELATED DISCLOSURES

1. F8 - Part A - Items 2, 3 and 4 of the Form C

The characterisation of a company can only be arrived at after the company performed a
detailed functions, assets employed and risks (“FAR”) analysis. The FAR analysis is
usually prepared by the company in conjunction with the requirement to prepare a
comprehensive TPD. For companies below the threshold, they can opt to prepare a
simplified TPD that does not include a detailed FAR analysis.

CTIM Comment
For this category of companies (i.e. companies below the threshold), how would the IRB
expect the characterisation to be supported?

Detailed guidance and explanation for each characterisation is required to assist taxpayers
in determining the characterisation of the respective entity to avoid any mis-
characterisation.

Page 2 of 3
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450
Kuala Lumpur
Tel: +603-2162 8989 Fax: +603-2162 8990, +603-2161 3207 Email: secretariat@ctim.org.my, technical@ctim.org.my
 FEEDBACK/COMMENTS ON ON FORM C, YA 2022 – TRANSFER
PRICING RELATED DISCLOSURES

IRBM Comment

Taxpayers who are required to prepare full TPD should answer Part A - item 2(b), 3(b) and
4(b). Taxpayers who only prepare minimum TPD are NOT required to answer Part A - item
2(b), 3(b) and 4(b).

2. Company's business activity does not fall under any of the 3 types of characterisation (i.e.
manufacturing / distribution / service activities).

CTIM Comment
Please confirm if the Company should tick "NO" for the questions in Part A - items 2(a),
3(a) and 4(a)."

IRBM Comment

Yes, the company should tick “No” for the questions in Part A - items 2(a), 3(a) and 4(a).

3. Apart from the specified categories of manufacturing, distribution and services, there are
other types of industry not covered therein.

CTIM Comment
Please advise under which category should the taxpayer declare the following types of
business activities:
i. Property development
ii. Construction
iii. Logistics
iv. Oil Palm Plantation
v. Other activities not elsewhere specified

IRBM Comment

If a company involved in the above or other industries / business activities and does not
perform manufacturing, distributing and service activities, the taxpayer may answer ‘NO’ in
Part A – item 2(a), 3(a) and 4(a).

Page 3 of 3
Unit B-13-1 (Unit 1-5), Block B, 13th Floor, Megan Avenue II, No.12, Jalan Yap Kwan Seng, 50450
Kuala Lumpur
Tel: +603-2162 8989 Fax: +603-2162 8990, +603-2161 3207 Email: secretariat@ctim.org.my, technical@ctim.org.my