The Inland Revenue Board of Malaysia (IRBM) has published an FAQ document on the surcharge for transfer pricing adjustments, which is available on the transfer pricing guidance webpage. As provided by the Finance Act 2020, the tax authority was authorized to impose a surcharge of up to 5% on an increase of income or a reduction of any deduction or loss resulting from any transfer pricing adjustment made. The FAQ document clarifies the application of the surcharge as follows: Question 1 We seek clarification on the rationale for imposing a surcharge on loss cases or tax-exempt cases as there is...