No, IRAS does not have any preference. Taxpayers should instead select the Transfer Pricing Method that produces the most reliable results, taking into account the quality of available data and the degree of accuracy of adjustments.
Taxpayers may also choose other more appropriate methods or use a combination of various methods to comply with the arm’s length principle. Whichever method the taxpayer chooses, transfer pricing documentation should be maintained to demonstrate that its transfer prices are established in accordance with the arm’s length principle.