We have collected views and experience from our global transfer. There might also be situations where the transfer of the workforce leads to disadvantages. Addressing base erosion and profit shifting is a key priority of governments around the globe. The oecd is currently conducting an examination of the transfer pricing aspects of intangibles. The oecd will be continuing its work on the remainder of the 15 actions on beps throughout 2015. Practical application of economic valuation techniques which are. In cases where the net profit is weighted to assets, the question arises how to value the assets, e. Frank bollmann vice chairman ivsc munich germany mr.
Oecd 2, rue andre pascal 75775 paris france 2 september 2010 dear mr owens, transfer pricing aspects of intangibles. This would be taken into account through the compensation paid in the context of the restructuring. June 2012 and following the oecd s public meeting in november 2012. Guidance for tax administrations on the application of the approach to hardtovalue intangibles. The group hq is the owner of the intangibles and use contract. Written comments on the draft may be submitted by september 14, 2012, and a public. In november, the oecd hosted a second meeting to gather information from industry and advisors to aid this process. Oecd continues work on intangibles project the oecd s working party six is looking at chapter vi of the transfer pricing guidelines, intangibles, and considering how to improve the chapter. In view of landing on the transfer pricing track in its work to curb base erosion and profit shifting beps actions 810 the oecd published two new reports on 21 june 2018.
Characterisation of intangible transfers and transfers made in connection with a cost contribution agreement. The work on consumer protection, particularly in relation to ecommerce, is led by the oecd working party on. It is the voice of business in oecd policy making processes. Launch of the oecd ai policy observatory feb 27, 2020 15. The work on intangibles is specifically listed as one of the beps actions in that action plan. Under article 9 of the oecd model tax convention, where the conditions made or imposed in the use or transfer of intangibles between two associated enterprises differ from those that would be made between independent enterprises, then any profits that would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may. It should also be recognised that the discussion draft does not represent a complete draft of all of the. Valuation of intangibles for transfer pricing purposes. Draft on the transfer pricing aspects of intangibles. Oecd project on the transfer pricing aspects of the. Convergence of valuations for transfer pricing purposes with valuation for other purposes. Discussion drafts on intangibles, safe harbors and.
Broadening the range of instruments, which identified various challenges on both the demand and supply sides of finance markets oecd, 20151 and oecd work on knowledgebased capital and the economic impact. The revised oecd discussion draft on transfer pricing aspects of intangibles. Having just updated my book, a practical summary of the july 2017 oecd transfer pricing guidelines. On june 6, 2012, the organisation for economic cooperation and development oecd released a discussion draft on potentially updating the provisions of article 6 of the oecd transfer pricing guidelines guidelines. Revised discussion draft on transfer pricing aspects of intangibles on 6 june 2012 the oecd published a discussion draft on transfer pricing aspects of intangibles. Oecd released a discussion draft on potentially updating the provisions of article 6 of the oecd transfer pricing guidelines guidelines. The oecd guidelines of 1995 referred to the psm as a method of last. Illustrative example of intangible asset valuation. Whilst the global antibase erosion proposals are novel as compared to existing international tax. On the basis of this further analysis, it is anticipated that the inclusive framework will work towards a consensusbased solution by 2020. Sollund is delegate to the oecd committee on fiscal affairs and member of its bureau, working party no 6 and its bureau, and member of the united nations committee of experts on international cooperation in tax matters and coordinator of its subcommittee on transfer pricing mandated to further develop the transfer pricing manual for developing. This work is published on the oecd ilibrary, which gathers all oecd books, periodicals and. On 19 july 20, the oecd released an action plan related to base erosion and profit shifting.
Discussion drafts on intangibles, safe harbors and timing issues released on 6 june 2012, the oecd released three discussion drafts on transfer pricing matters and has solicited comments from business on the following. Addressing base erosion and profit shifting beps is a key priority of governments around the globe. The party that developed the intangibles should be able to obtain benefits. Base erosion and profit shifting oecd project wikipedia. On february 2019, as part of the ongoing work of the oecdg20. The revised oecd discussion draft on transfer pricing aspects of intangibles in the second article of a series on the transfer pricing aspects of intangibles, the authors examine and summarize the most crucial changes made to the discussion draft of 6 june 2012. The oecd released for public comment a revised discussion draft on transfer pricing aspects of intangibles. Chapter 6 transfer pricing methods 6ntroduction to.
The oecd working party on indicators for the information society wpiis, now wpmade led the measurement work related to ecommerce. Oecd publishes long awaited additional guidance on hard. Until 2012 he was a director responsible for group tax risk management at a. In 20, oecd and g20 countries, working together on an. Oecd revised discussion draft on transfer pricing aspects. Understanding intangibles summary of oecd beps action 8 6 the restructuring. Comments on the consultation document are invited by 6 march. Oecd intangibles discussion draft tax united states. Relevant working parties, including working party 1, working party 6 and the tfde, would support the work of the inclusive framework which gathers more than 110 members. On 6 june 2012 the oecd published a discussion draft on transfer pricing. This work is published on the oecd ilibrary, which gathers all oecd books, periodicals and statistical databases.
The oecd working party which is currently considering the complex issues around transfer pricing for intangibles yesterday released a discussion draft. Committee on fiscal affairs organisation for economic cooperation and development. These changes are discussed in more detail, and conclusions and some. In the second article of a series on the transfer pricing aspects of intangibles, the authors examine and summarize the most crucial changes made to the discussion draft of 6. The oecd g20 base erosion and profit shifting project or beps project is an oecd g20 project to set up an international framework to combat tax avoidance by multinational enterprises mnes using base erosion and profit shifting tools. Pwc would welcome consideration by working party 6 wp6 of the transfer pricing issues arising in relation to intangibles. Action 10, oecdg20 base erosion and profit shifting. Intangibles low valueadding intragroup services cost contribution arrangements. The release is earlier than expected, as it was scheduled for 20, and. The revised oecd discussion draft on transfer pricing. Illustrative example of intangible asset valuation this presentation contains general information only and none of deloitte touche tohmatsu, its member firms, or affiliates deloitte, by means of this presentation or its publication. This is a dg taxud working paper prepared for discussion purposes. One or another country may not be in full agreement with one or more of its provisions. Guidance on transfer pricing aspects of intangibles.
Oecd network on fiscal relations across levels of government. After two years of work, measures in response to the 15 actions were delivered to. The vatgst on crossborder businesstobusiness b2b trade in services and intangibles, which also continues to grow, is generally collected through a reversecharge or selfassessment mechanism, as recommended by the oecd international vatgst guidelines the guidelines oecd, 20177. The oecd has provided a discussion memorandum in advance of its 12 november public consultation on the revised discussion draft on transfer pricing aspects of intangibles and the white paper on transfer pricing documentation. Learn oecd guidance on business taxation in multiple countries a business that is not aware of all of its exposure to the tax policy of each country in which it does business may find itself paying more in taxes that the share of profit it generates. Convergence of valuations for transfer pricing purposes with valuation for other purposes presentation to working party no. The work will need to address evidentiary requirements so that they are proportionate and. Oecd 2014, guidance on transfer pricing aspects of intangibles, oecd g20 base erosion and profit shifting project, oecd. Oecd working party 6 releases discussion draft on transfer pricing for intangibles by redmarketing, jun 7 2012 12. Oecd working party 6 releases discussion draft on transfer.
These comments were prepared by an adhoc a3f working group chaired by ms. Oecd ilibrary special considerations for intangibles. The business and industry advisory committee to the oecd biac represents national business, industry and employer associations from oecd member and observer countries, as well as international sectorspecific associate experts. The aim of the jtpf exercise was to take stock of how the psm is applied within the eu and work. A look at the new oecd guidance and japanese regulations this piece was originally published in tax notes international, 18 january 2016, p. In 20, oecd and g20 countries, working together on an equal footing, adopted.
The oecd working party 6 aims to finalize their scoping exercise by the end of 2018. This work on intangibles is closely related to other beps actions contained in the action plan, including specifically. Understanding intangibles summary of oecd beps action 8. This process, allowing for early comment and debate, has been of great benefit in establishing clearer guidance in relation to the transfer pricing of intangibles, and we look forward to oecd working party 6 continuing with this practice in relation to future projects.
Working party 6 is dedicated to the taxation of multinational enterprises. Oecd guidance on transfer pricing aspects of intangibles. The transfer pricing of intangibles a proposed revised version of chapter vi of the oecd s transfer pricing. Scope pwc would welcome consideration by working party 6 wp6 of the transfer pricing issues arising in relation to intangibles. Transfer pricing aspects of intangibles working party no. Any surprises in the 2017 oecd transfer pricing guidelines. Aspects of intangibles 79 november 2011 at the oecd conference centre in paris 1. What the nose brings with himher is only talent to analyse and to participate. Oecd taxation working papers working papers from the centre for tax policy and administration of the oecd that cover the full range of the centres work on taxation with the main focus on tax policy related issues. The chapter builds on previous work of the oecd on these issues, such as the new approaches to sme and entrepreneurship financing. Postbeps application of the arm s length principle to intangibles. The oecd and the imf are progressing this work as a g20 priority.
In this groundbreaking new study, michelle markham offers an indepth examination of attitudes at the forefront of this rapidly evolving area of taxation law, focusing her work on a comparative analysis of the us, oecd, and australian perspectives on the transfer pricing of intangible assets. On the basis of comments received, working party no. Chapter 6 transfer pricing methods 6ntroduction to transfer pricing methods. He was a chief advisor at the danish competent authority for transfer pricing and was a country delegate at working party 6 at the oecd until 2014. The project, led by the oecd s committee on fiscal affairs, began in 20 with oecd and g20 countries, in a context of financial crisis and. Revised guidance on the application of the profit split method. Interested parties are invited to comment on the revised discussion draft by 1 october 20. The organisation for economic cooperation and development oecd seeks to reduce the risk of business taxation in multiple countries. Using book value could possibly distort the comparison, e.
163 1207 299 455 288 239 1030 161 625 300 201 258 1500 719 933 753 12 1056 940 1177 1512 444 1350 802 952 129 1162 1384 604 123 1081 220 744 217 806