Singapore officially adopts ALP

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Singapore officially adopts ALP

The Singapore government has passed a law that requires taxpayers to comply with the arm’s-length principle.

The Income Tax (Amendment) Act 2009 introduces the principle to taxpayers for the first time.

The new provision, section 34D, gives the tax authority the power to adjust the taxable income of an entity if a transaction does not meet the arm’s-length standard.

Before the new law was passed, the principle had been informally endorsed by the Inland Revenue Authority of Singapore and in Singapore’s tax treaties.

Taxpayers should take steps to ensure they have maintained correct documentation in the event of any potential dispute.

more across site & shared bottom lb ros

More from across our site

A recent decision underlines that Indian courts are more willing to look beyond just legal compliance and examine whether foreign investment structures have real business substance
Following his Liberal Party’s election victory, one source expects Mark Carney to follow the international consensus on pillar two, as experts assess the new administration
A German economics professor was reportedly ‘irritated’ by how the Finnish ministry of finance used his data
Countries that care about the fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
Gift this article