Ever since the Organization for Economic Cooperation and Development (OECD) introduced a 15-point action plan to address base erosion and profit shifting (BEPS) concerns, countries around the world have started rethinking their local transfer pricing legislation. This is primarily in response to Actions 8-10 and Action 13 of the BEPS plan, which focused on aligning transfer pricing outcomes with value creation and transfer pricing documentation, respectively. That’s why following the BEPS release, many countries have reacted by updating their local tax regulations to better align with the action items in the plan.
What Are OECD Country Profiles?
OECD country profiles are documents that outline the current state of countries’ legislation and to what extent their rules follow the OECD transfer pricing guidelines. (Tweet this!) While country profiles have existed for some time, the OECD has made extensive efforts over the last few years to expand their list of countries. These increasing efforts are largely in response to shifting international tax laws. The intention is for taxpayers to have a convenient, accessible way to digest and understand how local rules comply with the OECD transfer pricing guidelines.
Each country profile includes a series of questions that cover a number of key industry topics, such as:
- Transfer pricing methods
- Arm’s length principle
- Comparability analysis
- Intangible property
- Intra-group services
- Cost contribution agreements
- Transfer pricing documentation
- Administrative approaches to avoiding and resolving disputes
- Safe harbors and other simplification measures
- Other legislative aspects of administrative procedures
- Other relevant information
These profiles are a great resource to gain a consistent, harmonized view of varying transfer pricing legislation across over 50 OECD countries. The list is continually expanding as more country profiles are built and updated, with several more profiles noted as coming soon. (At the moment, Argentina, Chile, Finland, Iceland, and Italy are forthcoming profiles.)
Worried about meeting your OECD BEPS requirements? Gain access to a templated work plan, complete with task lists and timelines, to help you manage the compliance process successfully.
Quick Links to OECD Country Profiles
Now we’ll share links to all the active OECD country profiles listed on their website. We’ll update this list periodically to include new profiles released by the OECD.
- China (People’s Republic of)
- Costa Rica
- Czech Republic
- New Zealand
- Russian Federation
- Slovak Republic
- South Africa
- United Kingdom
- United States
In addition to reflecting the current state of the transfer pricing legislation in OECD countries, the profiles also link directly to the source documents, where available, for everything included—meaning you’ll never have to dig for information to verify local laws in the countries where you do business.
Is Your Company Compliant With The OECD Guidelines?
Transfer pricing compliance can be complex and confusing—but it doesn’t have to be. Our seasoned experts can help you minimize audit risk, ensure compliance with transfer pricing documentation requirements, and address your company’s unique challenges. Get in touch to learn more about Valentiam and how we can work together to resolve them.