New edition of the OECD Transfer Pricing Guidelines published in January

28 Jan 2022

The OECD released the 2022 edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations on 20 January 2022. The OECD Transfer Pricing Guidelines provide guidance on the application of the arm’s length principle and are an important source of interpretation in Finland and internationally.

The new version includes revised guidance on the transactional profit split method, guidance for tax administrations on the application of the approach to hard-to-value intangibles and transfer pricing guidance for financial transactions. Also, consistency changes have been made to the rest of the OECD Transfer Pricing Guidelines.

The guidance on the application of the transactional profit split method was issued in 2018, and the aim of the guidance is to clarify when the transactional profit split method is the most appropriate method to apply. It also includes additional guidance on how to apply this method.

The guidance on the application of the approach to hard-to-value intangibles was issued in 2018, and it helps tax administrations in applying the approach to hard-to-value intangibles, under BEPS Action 8. The section includes a number of examples clarifying the application of the hard-to-value intangibles approach in different scenarios and addresses the interaction between the hard-to-value intangible approach and access to the mutual agreement procedure under the applicable tax treaty.

The final form of new guidance on financial transactions was issued in 2020 and it is the first specific guidance from the OECD focusing on the transfer pricing aspects of financial transactions. This section provides illustrative examples of the transfer pricing aspects of financial transactions

The publication and a press release can be found here.

Deloitte Finland’s transfer pricing experts are happy to discuss any transfer pricing-related questions you may have!