![]() ![]() The new guidance follows many long-standing practices of applying the OECD Guidelines to financial transactions, but it is helpful to have these approaches set out and supported by examples. Specific areas including the role and remit of treasury functions, intra-group loans, cash pooling, hedging, financial guarantees and captive insurance are covered. This will continue to be an area for potential double taxation if countries take different views, without recourse to resolution under double tax treaties. There remains, as anticipated, the option for countries to apply domestic rules in respect of when a loan should be considered to be equity for tax purposes, and the guidance is not prescriptive on how this should be approached. ![]() The focus is broadly on accurate delineation of the transactions being priced based on facts and circumstances, in line with the approach to other intra-group transactions. This is the first time that specific guidance on pricing intra-group financing transactions has been included, and represents a big step forward in preventing and resolving disputes in this area. This newsflash is for information purposes only and cannot be relied upon as legal advice.The long-awaited new chapter of the OECD Transfer Pricing Guidelines sets out guidance for businesses and tax authorities on how to determine whether financial transactions between associated enterprises are consistent with the arm’s length principle. Gert Vranckx (VAT, customs, excises and other indirect taxes, Smet (International and EU corporate tax, case you have further questions on this publication or want to discuss a tax query, please do not hesitate to contact the author(s) or one of the members of the editorial board. Katrien Bollen (HR tax and global mobility, ) īen Plessers (Transfer Pricing and Valuations, ) ![]() Michiel Boeren (International and EU corporate tax, ) Īhmed El Jilali (International and EU corporate tax, ) Koen Morbée (International and EU corporate tax, ) If you have questions or would like to obtain more information on this topic, do not hesitate to contact the authors.įurthermore, if you have any issues or questions from the Belgian tax authorities, we welcome you to visit our website dedicated to Belgian transfer pricing audits ( Heleen Van Baelen – Senior Manager at Tiberghien economics ( Neuteleers – Partner at Tiberghien economics ( international tax team will continue to monitor these and other tax developments relevant for Belgium / Luxembourg based multinational enterprises. Moreover, we would suggest deleting footnote 5 on page 266 referring to work to be undertaken in 20… In our view, charging taxpayers for these guidelines contradicts the very essence of what the OECD attempts to accomplish, namely having the entire world abiding by the same OECD standard in a consistent manner. Therefore, it is recommended to keep track of the respective relevant dates of the different underlying reports published by the OECD rather than only assessing the publication date of the consolidated versions of the OECD TP Guidelines.įinally, we note that 2022 OECD TP Guidelines are available in 2 languages: English and French, in digital (PDF) format for which the OECD charges 99 EUR. As a rule, one should take the effective date of the controlled transaction to assess which OECD guidance to use as an appropriate source of reference. With another edition of these guidelines, timing becomes even more crucial when applying these OECD TP Guidelines, because it is essential to use the correct version of this document. After all, it was stated that ‘he current provisions of Section of Part, Chapter of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations are deleted in their entirety and replaced by the following language’. It was expected that the OECD would launch a new edition of its OECD TP Guidelines as the reports of the above listed topics had already made it clear that they were considered an integral part of the OECD TP Guidelines. ![]() It is important (and positive) to note that this January 2022 edition is merely a bundling of all formal guidance published by the OECD after the July 2017 edition’s release, and that no new content is included. ![]()
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