Quick answer: When LHDN serves a written notice for contemporaneous transfer pricing documentation, the taxpayer has 14 calendar days from the date of service to furnish it. The period is too short to create a reliable file from the beginning. The safest response is to confirm the deadline immediately, preserve records, assign one response owner and submit a reconciled CTPD package.
What starts the 14-day period?
The 14-day period is counted from the date LHDN’s written notice is served. Record the date of service, submission channel, assessment years and named transactions immediately. If anything is unclear, contact the officer using the details on the notice without delaying the document review.
Record the date received, submission channel, assessment years and named transactions. If anything is unclear, contact the officer using the details on the notice without delaying the document review.
First 48 hours: control the response
- Appoint a response owner. Use one finance or tax lead to coordinate all information.
- Preserve records. Stop routine deletion of emails, working papers and transaction support.
- Confirm scope. Identify the entities, years, related parties and transaction categories requested.
- Locate the dated CTPD. Confirm that the file was completed before the relevant return due date.
- Create a request tracker. Assign each document, owner, due date and review status.
Core 14-day transfer pricing checklist
| Document group | What to include |
|---|---|
| CTPD | The final dated full or minimum file for each requested year |
| Group and entity records | Organisation chart, business description, related-party register and financial statements |
| Transaction schedule | Amounts by related party, transaction type and year, reconciled to the ledger and tax computation |
| Agreements | Executed service, sale, loan, licence, guarantee and cost-sharing agreements |
| Functional analysis | Functions performed, assets used and risks assumed by each party |
| Pricing support | Method selection, comparables, searches, calculations and tested-party results |
| Commercial evidence | Invoices, deliverables, emails, meeting records, time sheets and proof of benefits received |
| Financing evidence | Loan terms, repayment history, credit analysis, currency, security and interest benchmark |
Review before submitting
The response should tell one consistent story. Reconcile the CTPD figures to the audited accounts, trial balance, related-party disclosures, tax return and tax computation. Check whether agreements match actual conduct. Explain material differences instead of leaving the officer to infer the reason.
Remove true duplicates, but do not omit an adverse document merely because it is inconvenient. Keep an index and a complete copy of what was submitted. Use clear file names and password-protect confidential packages where the official submission process permits it.
What are the consequences of a late or missing CTPD?
From year of assessment 2023, failure to furnish compliant CTPD within 14 days from service of the written notice may lead to prosecution. On conviction, the fine is RM20,000 to RM100,000, imprisonment for up to six months, or both. If no prosecution is instituted, the Transfer Pricing Tax Audit Framework 2025 provides administrative penalties of RM20,000 to RM100,000 per year of assessment, based on the period of delay after the 14-day deadline. The framework also states that a penalty may apply where the submitted TPD does not comply with the Transfer Pricing Rules 2023 and MTPGL 2024. A separate transfer pricing adjustment may attract a surcharge of up to 5%, even where no additional tax is payable.
Prepare before a notice arrives
Run a readiness check each year: confirm the documentation level, date the file before the return due date, retain transaction evidence and maintain a rapid-response folder. HTL’s transfer pricing audit checklist provides a broader preparation guide, and its LHDN tax-audit support can help manage a live request.
This article provides general information and is not a substitute for advice based on a specific notice, transaction or tax position.
