UK and International Tax news

OECD Issues Discussion Draft On Implementation Of Hard To Value Intangibles

Thursday 1st June 2017

The OECD has recently issued a discussion draft which provides guidance on the implementation of the approach to pricing transfers of hard to value intangibles, described in section D.4 of Chapter VI of the Transfer Pricing Guidelines, following on from the Final Report on BEPS Actions 8-10.

The Final Report on BEPS Actions 8 – 10 (“Aligning Transfer Pricing Outcomes with Value Creation”) focussed in particular on transfer pricing issues relating to transactions involving intangibles, and mandated the development of guidance on the implementation of the approach to pricing HTVIs contained in Section D.4 of Chapter VI of the TP Guidelines.

The discussion draft, which does not yet represent a consensus position of the Committee on Fiscal Affairs or its subsidiary bodies, presents the principles that should underline the implementation of the approach to HTVI, provides examples illustrating the application of this approach, and addresses the interaction between the approach to HTVI and the mutual agreement procedure under an applicable treaty.
Comments have been invited by 30 June 2017 on the implementation but not on the approach to pricing HTVI agreed under BEPS Action 8, which was published in the Final Report for Action 8-10 of the BEPS Action Plan.

 

If you would like further details on the discussion draft, please contact Keith Rushen on 0207 486 2378.

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