Transfer pricing as a career in Malaysia
TRANSFER Pricing has been the focus of international news as more and more governments, including Malaysia, are aggressively scrutinizing multinational corporations to combat profit shifting through intercompany transactions and collect a “fair share” of taxes. With the Base Erosion and Profit Shifting (BEPS) action plan of the Organization for Economic Cooperation and Development (OECD) and the introduction and expansion of transfer pricing regulations by the Malaysian tax authority, this has increased the focus on transfer pricing among taxpayers in Malaysia. Therefore, there is high growth potential and high demand in the area of transfer pricing.
Place of opportunity
Transfer pricing specialists are needed in both consulting firms and multinational companies with their own transfer pricing team in the private sector. The four major accounting firms are perhaps the largest single market employing transfer pricing specialists. Many also find transfer pricing career opportunities at medium-sized auditing firms, business consulting firms, boutique tax / transfer pricing firms, and law firms.
In addition to consulting firms, transfer pricing specialists can explore careers in the private sector with an internal transfer pricing team. In the private sector, transfer pricing specialists with practical experience are mostly needed to bring their technical knowledge and skills to the business.
Kind of work
A transfer pricing advisor offers its customers added value in three different ways: (1) ensuring compliance with transfer pricing guidelines, (2) providing instructions for planning and optimizing transfer pricing guidelines, and (3) providing support with dispute resolution.
Companies engaging in related party transactions in Malaysia are required to prepare transfer pricing documents annually. In preparation, a transfer pricing consultant conducts functional analysis meetings with customers to find out about the functions performed, the assets used and the risks taken by the company to characterize the units. The purpose of this is to provide instructions on appropriate transfer pricing guidelines or to create documentation that meets the requirements. Because a consultancy’s client base typically spans a wide variety of industries, including automotive, consumer products, oil and gas, shipping, financial services, healthcare, and many more, a transfer pricing advisor is given the opportunity to learn how multinational companies work and get a glimpse “behind them Backdrops ”of companies, commercial and other important departments.
Companies often use transfer pricing consultants when their business changes, such as: B. Business restructuring, supply chain changes and acquisitions. Transfer pricing advisors support the client by preparing relevant analysis and advising amid these changes in order to achieve a positive result. They are also particularly valuable in the event that tax authorities review or evaluate a company’s tax policy and documentation. The transfer pricing advisors advise and represent clients in order to defend them if their positions are challenged by the tax authorities during the review and appeal process.
Internal roles for a transfer pricing specialist could include working on transfer pricing policy, including overseeing transfer pricing rules, proactively managing transfer pricing risks and looking ahead; or transfer pricing implementation work such as transfer pricing calculations and report management. The type of work is usually more practical and focuses on risk management and policy implementation. It can also be much tighter depending on the industry as the only “customer” is the company you work for. However, the role would typically allow the Transfer Pricing Specialist to be in much more contact with people outside of the tax arena while working in the company.
Transfer pricing offers greater mobility than other areas of the tax profession because the rules and approach are similar across jurisdictions. On the other hand, corporate tax activities typically require domestic tax knowledge. Many transfer pricing teams in Malaysia are made up of professionals from different countries and backgrounds. If you want to work abroad, transfer pricing is a good place to start.
Students with degrees in finance, accounting, law, economics, or relevant professional qualifications are typically hired as transfer pricing employees in Malaysian consulting firms.
this The article was contributed by Mabel Tan Chih Chean, a Task Force member of the Young Malaysian Institute of Certified Public Accountants (MICPA) and Assistant Transfer Pricing Manager at Deloitte Malaysia. The views expressed in this article are those of the author and do not necessarily reflect the views of MICPA.