OECD releases update on Transfer Pricing Guidelines for MNEs and Tax Administration - Tax and Legal blog

TP Guidelines

The OECD has published a new, updated version of the Transfer Pricing Guidelines, which now includes the updated guidance regarding possible approaches to apply to hard-to-value intangibles, the application of the transactional profit method and new guidance on financial transactions.

The OECD has updated the Transfer Pricing Guidelines to include the guidance documents approved in 2018 and 2020. The newest version now includes

  • the revision of the guidance on the application of the profit method in Chapter II,
  • the guidance for tax administrations on the application of the approach to hard-to-value intangibles as a new annex to Chapter VI, and
  • the updated guidance on financial transactions incorporated into Chapter I (new Section D.1.2.2) and as a new Chapter X.

Lastly, some consistency changes have been made to the rest of the Guidelines.

The OECD guidelines 2022 do not include any new interpretations of the application of the arm’s length principle, but now incorporate all the latest revised guidance on the application of the arm’s length principle agreed upon by the OECD countries over the last years.

The OECD intends to continue to regularly review the accuracy of the guidelines and identify where further work could be necessary.

The newest version of the Guidelines can be found on the OECD’s website here.

If If you would like to discuss more on this topic, please do reach out to our key contacts below.

Key contacts

Salim Damji_2

Salim Damji - Partner, Transfer Pricing 

Salim is a Tax Partner with more than 20 years of experience in transfer pricing and business model optimisation. He has worked in a variety of countries including the UK, Switzerland, and the US.

Salim has worked with a number of multi-national groups assisting them in their transfer pricing audits, documentation, and planning issues. Salim’s main focus over the past few years has been intellectual property planning, business restructuring, and APAs. Salim has been continuously named as one of the world’s leading transfer pricing advisors since 2005 in different journals. 

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Kayla(1)

Kayla Eberli - Senior Manager, Transfer Pricing

Kayla is a Senior Manager in the Business Tax team of Deloitte Switzerland. She has over 7 years of experience providing transfer pricing advisory and compliance support to multinational enterprises across a spectrum of industries and manages projects in the field of consulting to global compliance.

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Florian_resized

Florian Hildbrand - Consultant, Transfer Pricing

Florian is a Consultant in the Business Tax team of Deloitte Switzerland. He is involved in various transfer pricing projects with a focus on transfer pricing documentation, benchmarking studies and value chain analyses.

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