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07/01/2005 - Mexico has become a leader in Latin America for transfer pricing, according to a new OECD report.
Transfer prices are those charged when one unit of a multinational sells an item or provides a service to another unit of the same firm in a different country. International consensus on transfer pricing is essential to ensure each government receives a fair allocation of a multinational’s tax base as well as to minimise risks of double taxation for these enterprises.
The Review of Mexico’s Transfer Pricing Systems says that, since its accession to the OECD in 1994, Mexico has made considerable efforts to implement the OECD Guidelines and that overall, Mexican laws and practices follow the key OECD principles in this area but points to a number of difficulties in implementing the legislation.
Significant input to the review process was provided by representatives of the Mexican and international business communities.
The report is available on the OECD website at http://www.oecd.org/dataoecd/29/16/34244429.pdf. For further information journalists are invited to contact Caroline Silberztein, Head of the OECD’s Transfer Pricing Unit (tel: +33 1 4524 1494), or the OECD’s Media Relations Division (tel: +33 1 4524 9700).
For further information on transfer pricing
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