Taxpayers engaged in controlled transactions are required to prepare a Contemporaneous Transfer Pricing Documentation (“CTPD”), either Full or Minimum CTPD, if it meets the following criteria:

• Full CTPD: Generates gross business income exceeding RM30 million in total and engages in cross-border controlled transactions totalling RM10 million annually, or those receives/provides controlled financial assistance exceeding RM50 million annually.​
• Minimum CTPD: Applicable to taxpayers whose controlled transactions do not meet the specified criteria for Full CTPD.

• The full CTPD include the local file information plus some additional information added in the latest transfer pricing guidelines as follows:
• .Group analysis which is the same as the Master File.
• .Business Information.
• .Cost Contribution Arrangement.
• .Information and documents related to specific transactions
• .Index to documents
• .Date of completion
• .Any documents that serve as a foundation, provide support, or were referred to during the development of the transfer pricing analysis, including documentation for comparable searches
• .Any other relevant information, data, or documents that can be used to determine the arm's length price of the controlled transactions, including the effects of any material changes to the business conditions during the basis period

Please refer to the Rules for a detailed information required for each Schedule.

A minimum CTPD is a simplified version of the full CTP focusing on the following:

• Worldwide group structure
• Organisational structure
• Controlled transactions
• Pricing policy

To ease the compliance burden, the following persons are exempted from preparing CTPD: 

- Individuals not carrying on a business.​

- individuals carrying on a business (including partnerships) who only engage in domestic controlled transactions​;

- person who entered into controlled transactions with a total not exceeding RM1 million; or​

- person who entered solely into domestic controlled transactions with another person where both parties:

1. Do not enjoy tax incentives;
2. Are taxed at the same headline rate; and
3. Do not suffer losses for two consecutive years prior to the controlled transactions.​

The persons who are exempted must still comply with the arm’s length principle for all controlled transactions and maintain relevant documentation to support the arm’s length price.​

• Non-compliance with CTPD: Failure to comply will result ​in a penalty of RM300 to RM10,000, imprisonment for up to 1 year.
• Failure to submit CTPD within 14 days (TP audit cases effective 1 January 2021): Failure to furnish CTPD within 14 days after receiving a written notice from the IRBM will result in a penalty of RM20,000 to RM100,000 for each YA, or imprisonment for up to 6 months, or both. The penalty amount depends on the delay duration:​
• Non-compliance with arm’s length principle (TP audit cases effective 1 January 2021): Failure to comply will result in additional corporate tax payable and surcharge of up to 5% on TP adjustments.
• Voluntary disclosure (VD):  A surcharge of 0% to 4% may be applied to TP adjustments, provided the taxpayer meets the IRBM’s voluntary disclosure criteria. Taxpayers may submit a voluntary disclosure after the income tax return deadline, but prior to the commencement tax audit.

The concession applies to taxpayers who has an accounting period that begins before 29 May 2023, which is the date the P.U.(A) 165/2023 was gazetted.