OECD

OECD GUIDELINES FOR MULTINATIONAL ENTERPRISES 2022

1.                   The Arm’s Length Principle

a.       Introduction

b.       Statement of the arm’s length principle

c.       A non-arm’s length approach: Global formulary apportionment

d.       Guidance for applying the arm’s length principle

2.                   Transfer Pricing Methods

a.       Selection of the Transfer Pricing Method

1)      Selection of the most appropriate transfer pricing method to the circumstances of the case

2)      Use of more then one method

b.       Traditional Transaction Methods

1)      Introduction

2)      Comparable uncontrolled price method

3)      Resale price method

4)      Cost plus method

c.       Transactional Profit Methods

1)      Introduction

2)      Transactional net margin method

3)      Transactional profit split method

4)      Conclusions on transactional profit methods

3.                   Comparable analysis

a.       Performing a comparability analysis

b.       Timing issues in comparability

c.       Compliance issues

4.                   Administrative approaches to avoiding and resolving transfer pricing disputes

a.       Introduction

b.       Transfer Pricing Compliance Practices

c.       Corresponding adjustments and the mutual agreement procedure: Articles 9 and 25 of the OECD Model Tax Convention

d.       Simultaneous tax examinations

e.       Safe Harbours

f.        Advance Pricing Arrangements

g.       Arbitration

5.                   Documentation

a.       Introduction

b.       Objectives of Transfer Pricing Documentation Requirements

c.       A Three-Tiered Approach to Transfer Pricing Documentation

d.       Compliance Issues

e.       Implementation

6.                   Special consideration for intagibles

a.       Identifying Intagibles

b.       Ownership of Intagibles and Transactions Involving the Development, enhancement, maintenance, protection and exploitation of intangibles

c.       Transactions involving the use of transfer intagibles

d.       Supplemental guidance for determining arm’s length conditions in cases involving intagibles

7.                   Special consideration for intra-group services

a.       Introduction

b.       Main issues

c.       Some examples of intra-group services

d.       Low valu-adding intra-group services

8.                   Cost contribution arrangements

a.       Introduction

b.       Concept of a CCA

c.       Applying the arm’s length principle

d.       CCA Entry, withdrawal or termination

e.       Recommendations for structuring and documenting CCAs

9.                   Transfer pricing aspects of business restructurings

a.       Introduction

b.       Arm’s Lentgh Compensation for the restructuring itself

1)      Introduction

2)      Understanding the restructuring itself

3)      Recognition of the accurately delineated transactions that comprise the business restructuring

4)      Reallocation of profit potential as a result of a business restructuring

5)      Transfer of something of value (e.g. an asset or an ongoing concern)

6)      Indemmification of the restructured entity for the termination or substantial renegotiation of existing arrangements

c.       Remuneration of post-restructuring controlled transactions

1)      Business restructurings versus structuring

2)      Application to business restructuring situations: selection and application of a transfer pricing method for the post-restructuring controlled transactions

3)      Realtionship between compensation for the restructuring  and post-restructuring remuneration

4)      Comparing the pre-and post-restructuring situations

5)      Location saving

10.               Transfer Pricing aspects of financial transactions

a.       Introduction

b.       Interaction with the guidance in Section

c.       Treasury function

d.       Financial guarantees

e.       Captive insurance