In the context of the regular meetings of tax inspectors organised by the Committee on Fiscal Affairs, the Working Party will arrange biennial meetings of tax examiners to discuss difficult case paradigms and to provide an input to any appropriate updates to the Guidelines. OECD will consider the difficult case paradigms only from the perspective of monitoring the application of the Guidelines ...

In July 1995, the OECD Council approved for publication the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (“the Guidelines”), submitted by the Committee on Fiscal Affairs (“the Committee”). At the same time, the OECD Council endorsed the Committee’s recommendation that the Guidelines be reviewed and up-dated periodically as appropriate based upon the experience of member countries and the business community with the application of the principles and methods set forth in the Guidelines. For this purpose, and to facilitate on-going clarifications and improvements, the OECD Council instructed the Committee to undertake a period of monitoring international transfer pricing experience. The monitoring role is seen as an integrated part of the agreement reached in July 1995 and its successful implementation is a key feature to getting a consistent application of the Guidelines. The Council Recommendation “instructs the Committee on Fiscal Affairs to monitor the implementation of the 1995 Report in cooperation with the tax authorities of member countries and with the participation of the business community and to recommend to the Council to amend and update, if necessary, the 1995 Report in the light of this monitoring” ...

These Guidelines focus on the main issues of principle that arise in the transfer pricing area. The Committee on Fiscal Affairs intends to continue its work in this area. A revision of Chapters I-III and a new Chapter IX were approved in 2010, reflecting work undertaken by the Committee on comparability, on transactional profit methods and on the transfer pricing aspects of business restructurings. In 2013, the guidance on safe harbours was also revised in order to recognise that properly designed safe harbours can help to relieve some compliance burdens and provide taxpayers with greater certainty. In 2016, these Guidelines were substantially revised in order to reflect the clarifications and revisions agreed in the 2015 BEPS Reports on Actions 8-10 Aligning Transfer pricing Outcomes with Value Creation and on Action 13 Transfer Pricing Documentation and Country-by- Country Reporting. In 2018, a revision of the guidance on the application of the profit split method in Chapter II was approved, as well as the addition of a new annex to Chapter VI which provides guidance for tax administrations on the application of the approach to hard-to-value intangibles. Finally, in 2020 a new Chapter X was added to these Guidelines to incorporate guidance on the transfer pricing aspects of financial transactions. The Committee intends to have regular reviews of the experiences of OECD member and selected non-member countries in applying the arm’s length principle in order to identify areas on which further work could be necessary ...

The Committee on Fiscal Affairs, which is the main tax policy body of the OECD, has issued a number of reports relating to the application of these Articles to MNEs and to others. The Committee has encouraged the acceptance of common interpretations of these Articles, thereby reducing the risk of inappropriate taxation and providing satisfactory means of resolving problems arising from the interaction of the laws and practices of different countries ...

In the context of the regular meetings of tax inspectors organised by the Committee on Fiscal Affairs, the Working Party will arrange biennial meetings of tax examiners to discuss difficult case paradigms and to provide an input to any appropriate updates to the Guidelines. OECD will consider the difficult case paradigms only from the perspective of monitoring the application of the Guidelines ...

In July 1995, the OECD Council approved for publication the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (“the Guidelines”), submitted by the Committee on Fiscal Affairs (“the Committee”). At the same time, the OECD Council endorsed the Committee’s recommendation that the Guidelines be reviewed and up-dated periodically as appropriate based upon the experience of member countries and the business community with the application of the principles and methods set forth in the Guidelines. For this purpose, and to facilitate on-going clarifications and improvements, the OECD Council instructed the Committee to undertake a period of monitoring international transfer pricing experience. The monitoring role is seen as an integrated part of the agreement reached in July 1995 and its successful implementation is a key feature to getting a consistent application of the Guidelines. The Council Recommendation “instructs the Committee on Fiscal Affairs to monitor the implementation of the 1995 Report in cooperation with the tax authorities of member countries and with the participation of the business community and to recommend to the Council to amend and update, if necessary, the 1995 Report in the light of this monitoring” ...

These Guidelines focus on the main issues of principle that arise in the transfer pricing area. The Committee on Fiscal Affairs intends to continue its work in this area. A revision of Chapters I-III and a new Chapter IX were approved in 2010, reflecting work undertaken by the Committee on comparability, on transactional profit methods and on the transfer pricing aspects of business restructurings. In 2013, the guidance on safe harbours was also revised in order to recognise that properly designed safe harbours can help to relieve some compliance burdens and provide taxpayers with greater certainty. Finally, in 2016 these Guidelines were substantially revised in order to reflect the clarifications and revisions agreed in the 2015 BEPS Reports on Actions 8-10 Aligning Transfer pricing Outcomes with Value Creation and on Action 13 Transfer Pricing Documentation and Country-by-Country Reporting. Future work will address the application of the transactional profit split method, the transfer pricing aspects of financial transactions, and intra-group services. The Committee intends to have regular reviews of the experiences of OECD member and selected non-member countries in applying the arm’s length principle in order to identify areas on which further work could be necessary ...

The Committee on Fiscal Affairs, which is the main tax policy body of the OECD, has issued a number of reports relating to the application of these Articles to MNEs and to others. The Committee has encouraged the acceptance of common interpretations of these Articles, thereby reducing the risk of inappropriate taxation and providing satisfactory means of resolving problems arising from the interaction of the laws and practices of different countries ...