New OECD 2022 Transfer Pricing Guidelines will be published this week. These guidelines advise how to apply the “arm’s length” principle, which is the international consensus on the valuation of foreign-related party transactions.
Multinational enterprises, under the supervision of governments, should report their taxable income in a way that reflects the economic activity carried out there and without artificially shifting their taxable profits out of their jurisdiction. Taxpayers must also set limits to avoid double taxation.
According to the information advanced by the OECD, this January 2022 edition will include the following guides: Revised Guide on the application of the Profit Split method, Guide for tax administrations on the application of the hard-to-value intangibles approach agreed in 2018, and the New Transfer Pricing Guide on financial transactions approved in 2020.
Source: OCDE 18/01/22