The Inland Revenue Authority of Singapore (IRAS) has published an updated e-Tax Guide GST: Transfer Pricing Adjustments (Second Edition). The e-Tax guide explains the GST treatment for adjustments on the transfer prices of transactions between related parties and is relevant when taxpayers have TP adjustments made to their transactions with related parties.

The latest edition of the e-Tax guide includes the following amendments:

(i) Revised paragraph 5.1 to extend the administrative concession for taxable goods imported under an import GST suspension scheme, along with an additional Footnote 5 to clarify that import GST suspension schemes exclude the Import GST Deferment Scheme (IGDS).

(ii) Added Footnote 8 to clarify that no tax needs to be paid to Singapore Customs and no adjustments need to be made to GST returns if the person qualifies for the administrative concession under paragraph 5. If the person is under IGDS and is not entitled to a full input tax credit, additional tax need not be paid to Singapore Customs but adjustments to the GST return will still be required.

(iii) Revised paragraph 7.3 on when to make GST adjustments in the event that no invoice is issued and no payment is made/received for the TP adjustment.

(iv) Other editorial amendments.