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.
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