Transfer Pricing Alerts

OECD issues Country-by-Country Reporting Implementation Package

On 8 June 2015, the Organization for Economic Cooperation and Development (“OECD”) released Action 13: Country-by-Country Reporting Implementation Package (“CbC”), by which additional assistance is offered with respect to the implementation of CbC reporting. The CbC implementation package outlines model legislation that governments can use to adopt the new rules, as well as competent authority agreements to implement the sharing mechanisms for the CbC report. Click the link to access a material presenting in more detail each provision introduced by OECD through this action regarding the implementation of the CbC reporting.

OECD issues discussion draft on hard-to-value intangibles

On June 4, 2015, the Organization for Economic Cooperation and Development (OECD) released a non-consensus discussion draft on Action 8 of its base erosion and profits shifting (BEPS) plan regarding hard-to-value intangibles (hereinafter referred to as “HTVI”).

OECD / G20 Base Erosion and Profit Shifting Project. Action 13: Guidance on the Implementation of the Transfer Pricing Documentation and Country-by-Country Reporting

Following the report published by the Organization for Economic Cooperation and Development (“OECD”) in September 2014 regarding three-tier approach on the transfer pricing documentation, more precisely the master file, the local file and the Country-by-Country reporting (CbC), OECD offers additional assistance through Action 13 regarding the implementation of the documentation and of the CbC reporting in order to ensure a consistent approach.

The Organisation for Economic Co-operation and Development releases guidance on intangibles

The Organisation for Economic Co-operation and Development (OECD)’s revised guidance in Chapter VI of the Transfer Pricing Guidelines defines intangibles as assets other than physical or financial assets that are capable of being owned or controlled by a single enterprise. Under this definition, location-specific characteristics and workforce in place are not considered intangibles, because they are not capable of being owned or controlled; rather, they should be considered comparability factors to be taken into account in a transfer pricing analysis. The revisions to Chapter I issued September 16 as part of the release of Base Erosion and Profit Shifting (BEPS) deliverables provide important guidance on location-specific characteristics, workforce-in-place, and synergy benefits as comparability factors.

Organization for Economic Cooperation and Development (OECD) Release on Transfer Pricing Documentation: The New Global Standard

On September 16, the Organization for Economic Cooperation and Development (OECD) issued the final revisions to Chapter V of the Transfer Pricing Guidelines. These revisions materially reduce the documentation burden on businesses contemplated in the discussion draft on transfer pricing documentation issued on January 30, 2014, and Country-by-Country (CbC) reporting, and clarify many of the issues that had concerned businesses.