On or about 24 May 2019, the Inland Revenue Authority of Singapore (IRAS) has released the new e-Tax guide, Transfer Pricing Guidelines, Special Topic – Commodity Marketing and Trading Activities (First Edition).

This e-Tax guide analyses the economic value of taxpayers’ commodity marketing and trading activities in Singapore and helps taxpayers to comply with the arm’s length principle and transfer pricing documentation requirement when these activities are carried out with their related parties.

This e-Tax guide is relevant to a business entity incorporated or registered in Singapore and involved in the business of marketing and/or trading in commodities. Businesses will be required to read and apply the principles and guidance set out in the IRAS Transfer Pricing Guidelines together with the specific guidance in the e-Tax Guide.

The IRAS generally takes guidance from the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.

Source: IRAS website, 24 May 2019