Oct 2011 The Ministry of Strategy and Finance ("MOSF") has recognised that differences between transfer pricing rules under the Law for Coordination of International Tax Affairs ("LCITA") and customs valuation rules under the Customs Law pose difficulties to taxpayers. The amendments are to not only harmonise the differences in regimes but also to improve transfer pricing and customs valuation systems as well as customs duty assessments to protect the rights and interests of taxpayers.
Major amendments:
- Correlative adjustments between transfer pricing and customs value for import transactions;
- Opportunity to present taxpayer’s opinion in determining customs value;
- Improvement on profit and general expense ratio under Method 4 of customs valuation;
- Exemption from penalties in relation to Advance Customs Valuation Arrangement ("ACVA");
- Establishment of Customs Ruling Examination Committee ("CREC"); and
- Establishment of duty amendment system.
