Draft OECD transfer pricing guidance released on hard-to-value intangibles

The OECD today released a discussion draft providing guidance to tax administrations on how to implement transfer pricing guidelines on transfers of hard-to-value intangibles.

An approach to hard-to-value intangibles was agreed to by the OECD and G20 and published in the Action 8-10 final report on of Base Erosion Profit Shifting (BEPS) plan in October 2015. The approach was then set out in Chapter VI of the OECD Transfer Pricing Guidelines.

The new draft is aimed at improving consistency among tax administrations and reducing the risk of economic double double taxation.

It presents the principles that should underline the implementation of the approach to hard-to-value intangibles, provides examples illustrating the application of this approach, and addresses the interaction between the approach and the mutual agreement procedure under tax treaties.

The OECD noted that the draft does not yet represent a consensus position of the Committee on Fiscal Affairs or its subsidiary bodies.

Interested parties are invited to send comments on the discussion draft by June 30.

MNE Tax will publish an in-depth look at this new guidance by a tax expert early next week. This analysis will also be included in the MNE Tax newsletter published the week of May 29

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