OECD Releases 2017 Transfer Pricing Guidelines

The OECD released the 2017 Edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Based on the 2010 Transfer Pricing Guideline, the updated edition provides guidance on how to apply the Arm’s length principle under BEPS context.

Integration with BEPS Actions

In 2015, OECD published 15 final reports on the BEPS project which have been welcomed globally. This 2017 TP Guideline integrates propositions of the report regarding several aspects and covers both substantial rules and procedural rules such as documentation and filing. All the revisions have been approved during 2013 to 2017. The main outcome of the amendments includes:

  • Revisions introduced by BEPS Actions 8-10 (Aligning Transfer Pricing Outcomes with Value Creation). Corresponding Amendments can be observed in the guidance in Chapters I, II, V, VII and VIII;
  • Revisions introduced by BEPS Actions 13 (Transfer Pricing Documentation and Country-by-Country Reporting). Corresponding Amendments can be observed in Chapters V of the guidance;
  • The revisions to Chapter IX to conform the guidance on business restructurings to the revisions introduced by the 2015 BEPS Reports on Actions 8-10 and 13;
  • The revised guidance on safe harbour rules in Chapter IV;
  • Consistency changes that were needed in the rest of the OECD Transfer Pricing Guidelines to produce this consolidated version of the Guidelines.

Determination of Transfer Pricing between Associated Enterprises

This latest edition contains the revised Recommendation of the OECD Council on the Determination of Transfer Pricing between Associated Enterprises [C(95)126/FINAL] as well. The revised recommendation relates to tackling BEPS and establishing the Inclusive Framework on BEPS. By involving non-OECD members into the revision, the Guideline managed to expand its impact. In addition, the OECD Council allows the Committee on Fiscal Affairs to approve by consensus future amendments to the Guidelines which are essentially of a technical nature.

Sources: OECD, 2017 TP Guideline


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