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| OECD Transfer Pricing Guidelines for
Multinational Enterprises and Tax Administrations provides guidance on the
application of the "arm's length principle," which is the international
consensus on transfer pricing, i.e. on the valuation, for tax purposes, of
cross-border transactions between associated enterprises. In a global economy
where multinational enterprises (MNEs) play a prominent role, transfer pricing
is high on the agenda of tax administrators and taxpayers alike. Governments
need to ensure that the taxable profits of MNEs are not artificially shifted
out of their jurisdictions and that the tax base reported by MNEs in their
respective countries reflect the economic activity undertaken therein. For
taxpayers, it is essential to limit the risks of economic double taxation that
may result from a dispute between two countries on the determination of an
arm's length remuneration for their cross-border transactions with associated
enterprises. |
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The OECD Transfer Pricing Guidelines
were approved by the OECD Council in their original version in 1995. A limited
update was made in 2009, primarily to reflect the adoption, in the 2008 update
of the Model Tax Convention, of a new paragraph 5 of Article 25 dealing with
arbitration, and of changes to the Commentary on Article 25 on mutual agreement
procedures to resolve cross-border tax disputes.
In the 2010 edition,
Chapters I-III were substantially revised, with new guidance on the selection
of the most appropriate transfer pricing method to the circumstances of the
case; the practical application of transactional profit methods (transactional
net margin method and profit split method); and on the performance of
comparability analyzes. Furthermore, a new Chapter IX, on the transfer pricing
aspects of business restructurings, was added. Consistency changes were made to
the rest of the Guidelines. |
Contents:
- Foreword
- Preface
- Glossary
- The Arm's Length Principle
- Transfer Pricing Methods
- Comparability Analysis
- Administrative Approaches to Avoiding and Resolving
Transfer Pricing Disputes
- Documentation
- Special Considerations for Intangible Property
- Special Considerations for Intra-Group Services
- Cost Contribution Arrangements
- Transfer Pricing Aspects of Business
Restructurings
- Annex to the OECD Transfer Pricing Guidelines
- Annex II to Chapter II. Example to Illustrate the
Application of the Residual Profit Split Method
- Annex III to Chapter II. Illustration of Different
Measures of Profits When Applying a Transactional Profit Split Method
- Annex to Chapter III. Example of a Working Capital
Adjustment
- Annex to Chapter IV. Guidelines for Conducting
Advance Pricing Arrangements under the Mutual Agreement Procedure ("MAP APAs")
- Annex to Chapter VI. Examples to Illustrate the
Guidance on Intangible Property and Highly Uncertain Valuation
- Appendix: Recommendation of the Council on the
Determination of Transfer Pricing between Associated Enterprises
[C(95)126/Final]
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| Please note: The
1999 Binder edition is out of print (cat # 231999671P), and the loose-leaf
service has been discontinued by the OECD. |
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