IRAS Clarifies the value of Related Party Transactions (RPT) for reporting in the RPT Form excludes Director Fees

The IRAS clarification is a welcome and practical development that simplifies compliance without undermining the objectives of Singapore’s transfer pricing regime. Businesses should revisit their RPT Form reporting calculations, update internal compliance procedures, and communicate the revised position to finance and tax teams responsible for transfer pricing compliance.

Although director fees are no longer included in determining the RPT reporting threshold, companies should continue to maintain robust documentation supporting the commercial rationale and tax treatment of all other related party transactions to ensure ongoing compliance with Singapore’s transfer pricing requirements.