OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022.

Format:

Book

Author/Creator:

OECD.

Organisation for Economic Co-operation and Development, author, issuing body.

Series:

OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations

Language:

English

Subjects (All):

Taxation--Law and legislation.

Taxation.

Physical Description:

1 online resource (658 pages)

Edition:

1st ed.

Place of Publication:

Paris : Organization for Economic Cooperation & Development, 2022.

Summary:

In a global economy where multinational enterprises (MNEs) play a prominent role, governments need to ensure that the taxable profits of MNEs are not artificially shifted out of their jurisdiction and that the tax base reported by MNEs in their country reflects the economic activity undertaken therein. For taxpayers, it is essential to limit the risks of economic double taxation.

Contents:

Intro

Table of contents

Foreword

Preface

Abbreviations and acronyms

Glossary

Chapter I. The arm's length principle

A. Introduction

B. Statement of the arm's length principle

C. A non-arm's-length approach: global formulary apportionment

D. Guidance for applying the arm's length principle

Chapter II. Transfer pricing methods

Part I: Selection of the transfer pricing method

A. Selection of the most appropriate transfer pricing method to the circumstances of the case

B. Use of more than one method

Part II: Traditional transaction methods

B. Comparable uncontrolled price method

C. Resale price method

D. Cost plus method

Part III: Transactional profit methods

B. Transactional net margin method

C. Transactional profit split method

D. Conclusions on transactional profit methods

Chapter III. Comparability analysis

A. Performing a comparability analysis

B. Timing issues in comparability

C. Compliance issues

Chapter IV. Administrative approaches to avoiding and resolving transfer pricing disputes

B. Transfer pricing compliance practices

C. Corresponding adjustments and the mutual agreement procedure: Articles 9 and 25 of the OECD Model Tax Convention

D. Simultaneous tax examinations

E. Safe harbours

F. Advance pricing arrangements

G. Arbitration

Chapter V. Documentation

B. Objectives of transfer pricing documentation requirements

C. A three-tiered approach to transfer pricing documentation

D. Compliance issues

E. Implementation

Chapter VI. Special considerations for intangibles

A. Identifying intangibles

B. Ownership of intangibles and transactions involving the development, enhancement, maintenance, protection and exploitation of intangibles

C. Transactions involving the use or transfer of intangibles

D. Supplemental guidance for determining arm's length conditions in cases involving intangibles

Chapter VII. Special considerations for intra-group services

B. Main issues

C. Some examples of intra-group services

D. Low value-adding intra-group services

Chapter VIII. Cost contribution arrangements

B. Concept of a CCA

C. Applying the arm's length principle

D. CCA entry, withdrawal or termination

E. Recommendations for structuring and documenting CCAs

Chapter IX. Transfer pricing aspects of business restructurings

Introduction

A. Scope

B. Applying Article 9 of the OECD Model Tax Convention and these Guidelines to business restructurings: theoretical framework

Part I: Arm's length compensation for the restructuring itself

B. Understanding the restructuring itself

C. Recognition of the accurately delineated transactions that comprise the business restructuring

D. Reallocation of profit potential as a result of a business restructuring

E. Transfer of something of value (e.g. an asset or an ongoing concern)

F. Indemnification of the restructured entity for the termination or substantial renegotiation of existing arrangements

Part II: Remuneration of post-restructuring controlled transactions

A. Business restructurings versus "structuring"

B. Application to business restructuring situations: selection and application of a transfer pricing method for the post-restructuring controlled transactions

C. Relationship between compensation for the restructuring and post-restructuring remuneration

D. Comparing the pre- and post-restructuring situations

E. Location savings

Chapter X. Transfer pricing aspects of financial transactions

B. Interaction with the guidance in Section D.1 of Chapter I

C. Treasury function

D. Financial guarantees

E. Captive insurance

List of annexes

Annex to the OECD Transfer Pricing Guidelines. Guidelines for monitoring procedures on the OECD Transfer Pricing Guidelines and the involvement of the business community

Annex I to Chapter II. Sensitivity of gross and net profit indicators

Annex II to Chapter II. Examples to illustrate the guidance on the transactional profit split method

Annex to Chapter III. Example of a working capital adjustment

Annex I to Chapter IV. Sample Memoranda of Understanding for Competent Authorities to establish bilateral safe harbours

Annex II to Chapter IV. Guidelines for conducting Advance Pricing Arrangements under the Mutual Agreement Procedure (MAP APAs)

Annex I to Chapter V. Transfer pricing documentation - Master file

Annex II to Chapter V. Transfer pricing documentation - Local file

Annex III to Chapter V. Transfer pricing documentation - Country-by-Country Report

Table 1. Overview of allocation of income, taxes and business activities by tax jurisdiction

Table 2. List of all the Constituent Entities of the MNE group included in each aggregation per tax jurisdiction

Table 3. Additional Information

Annex IV to Chapter V. Country-by-Country Reporting Implementation Package

Annex I to Chapter VI. Examples to illustrate the guidance on intangibles

Annex II to Chapter VI. Guidance for tax administrations on the application of the approach to hard-to-value intangibles

Annex to Chapter VIII. Examples to illustrate the guidance on cost contribution arrangements

Appendix.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-92191-5