Transfer Pricing News | Issue 37 - December 2021
10 December 2021
The OECD and its Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations continue to lead as the principal source of guidance for transfer pricing regimes around the world. In this issue of BDO’s Transfer Pricing newsletter, we include articles from our member firms that bear out this trend.
In Austria, for example, the transfer pricing guidelines have been updated to incorporate the changes made in 2017 to the OECD guidelines, and the UK government announced that it will introduce legislation to require the largest companies to maintain, and provide upon request, master file and local file documentation. This would be the first time that transfer pricing documentation in a prescribed format -- following the OECD transfer pricing guidelines -- would be legally mandatory in the UK. And the Italian tax authorities have amended the transfer pricing documentation rules to align domestic requirements with post-BEPS standards.
In another important and long-awaited development, the European Parliament approved an amendment to the EU Accounting Directive that will impose additional reporting requirements on large multinational enterprises. The new rules—commonly referred to as the public CbCR rules-- require certain companies to publicly disclose tax-related information in the form of a country-by-country report.
Documentation and CbCR rules were also at the forefront in Denmark, which passed a bill on the preparation of documentation for domestic transactions, and Thailand, which issued a notification to clarify the transfer pricing documentation requirements and a separate notification containing CbCR regulations. Poland enacted a broad tax package that includes changes to the country’s rules governing the preparation of the local file and other documentation and information reporting obligations. Finally, Zambia’s 2022 budget includes changes to the country’s CbCR rules.
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Content adapted from BDO Global.