Organisation for Economic Co-operation and Development (OECD) released the report Transfer Pricing Guidance on Financial Transactions: Inclusive Framework on BEPS (base erosion and profit shifting): Actions 4, 8-10.
What does the report state and what is it meaning?
Addressing base erosion and profit shifting continues to be a key priority of governments around the globe. But it is the first time the OECD Transfer Pricing Guidelines include guidance on the transfer pricing aspects of financial transactions (as part of Actions 4, 8-10 of the BEPS Action Plan).
According to the OECD the report will contribute to consistency in the interpretation of the arm’s length principle. Furthermore it will help avoid transfer pricing disputes and double taxation. The guidance in this report describes the transfer pricing aspects of financial transactions. It also includes a number of examples to illustrate the principles discussed in the report.
You can find the whole report HERE.