New Changes to the OECD Transfer Pricing Guidelines

New Changes to the OECD Transfer Pricing Guidelines

On 15 June 2016, the OECD Council approved the amendments to the ‘Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations’ (Also as the OECD Transfer Pricing Guidelines). The changes are the most significant amendments introduced into the OECD Transfer Pricing Guidelines since 2010.

The amendments involved replacing some of the Chapters with the BEPS final reports of the following actions:

  • Action 8 -10’ Aligning Transfer Pricing Outcomes with Value Creation.'
  • Action 13 ‘Transfer Pricing Documentation and Country by Country Reporting.'

Key changes

Chapter Number

Amendment

One: The arm’s length principle

Section D: Guidance for applying the arm’s length principle

Section D has been deleted and replaced entirely with new guidance

Two: Transfer Pricing Methods

Section B Comparable Uncontrolled Price Method

New paragraph after paragraph 2.16 with additional guidance on commodity transactions

Two: Transfer Pricing Methods

Section A: Selection of most appropriate transfer pricing method

New paragraph after paragraph 2.9 with additional guidance on the application of profit split method

Five: Documentation

This Chapter has been deleted and replaced entirely with new guidance from Action 13 Transfer Pricing Documentation and Country by Country Reporting

Six: Special consideration for intangible property

This Chapter has been deleted and replaced entirely with new guidance

Seven: Special consideration for intra-group services

This Chapter has been deleted and replaced entirely with new guidance

Eight: Cost Contribution Arrangements

This Chapter has been deleted and replaced entirely with new guidance

For more information on how these changes can affect you contact Transfer Pricing Solutions

Australia

+61 (3) 59117001

reception@transferpricingsolutions.com.au

Singapore

+65 31585806

services@transferpricingsolutions.asia

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