The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations provide guidance on the application of the “arm’s length principle”, which is the international consensus on transfer pricing, i.e. on the valuation, for tax purposes, of cross-border transactions between associated enterprises. In a global economy where multinational enterprises (MNEs) play a prominent role, transfer pricing is high on the agenda of tax administrators and taxpayers alike. Governments need to ensure that the taxable profits of MNEs are not artificially shifted out of their jurisdictions and that the tax base reported by MNEs in their respective countries reflect the economic activity undertaken therein. For taxpayers, it is essential to limit the risks of economic double taxation that may result from a dispute between two countries on the determination of an arm’s length remuneration for their cross-border transactions with associated enterprises.
After having been originally published in 1979, the OECD Transfer Pricing Guidelines were approved by the OECD Council in their original version in 1995. A limited update was made in 2009, primarily to reflect the adoption, in the 2008 update of the Model Tax Convention, of a new paragraph 5 of Article 25 dealing with arbitration, and of changes to the Commentary on Article 25 on mutual agreement procedures to resolve cross-border tax disputes. In the 2010 edition, Chapters I-III were substantially revised, with new guidance on: the selection of the most appropriate transfer pricing method to the circumstances of the case; the practical application of transactional profit methods (transactional net margin method and profit split method); and on the performance of comparability analyses. Furthermore, a new Chapter IX, on the transfer pricing aspects of business restructurings, was added. Consistency changes were made to the rest of the Guidelines.
Read about OECD efforts to help governments improve the domestic and global policies that affect business and markets in the wake of the global economic crisis.
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G20 Leaders have committed to forego protectionism and have requested public reports on their adherence to this commitment. The third report by OECD and UNCTAD on investment and investment-related measures covers the period from November 2009 to May 2010.
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G20 Leaders have committed to forego protectionism and have requested public reports on their adherence to this commitment. This third joint report by OECD, UNCTAD and WTO on G20 trade and investment measures covers the period from 1 November 2009 until mid-May 2010.
The 2009 edition of the annual report focuses on consumer empowerment and responsible business conduct as well as providing an account of the actions adhering governments have taken over the 12 months to June 2009.
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This report presents the results of a fact finding survey on how governments seek to establish the identity of foreign investors, with a particular focus on transsectoral, security-related investment reviews. It was prepared for the OECD Freedom of Investment Roundtable to facilitate discussion of the issues by Roundtable participants.
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Cross-border investment in agricultural production and farmland is not a new phenomenon, but it is growing in importance. This report reviews international initiatives for promoting responsible investment in agriculture and explores what contribution, if any, OECD investment instruments could make to these initiatives. This paper was commissioned for the OECD Freedom of Investment Roundtable to facilitate discussion of the issues by
This Investment Policy Review examines Morocco’s achievements in developing an open and transparent investment regime and its efforts to reduce restrictions on international investment.
The 2010 Investment Reform Index for South-East Europe provides an independent and rigorous assessment of investment-related policy settings and reform against international good practice.
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This report covers investment measures taken between 1 September 2009 and 14 February 2010. Information presented in this report has also been used for a joint report by WTO, OECD and UNCTAD, released on 8 March 2010, in response to the G20 Leaders' request for public reporting on their adherence to their trade and investment policy commitments.