OECD Released Guidance on the Application of the Approach to Hard-to-value Intangibles (BEPS Action 8)
On 21 June 2018, the OECD published the guidance which should improve consistency and reduce the risk of economic double taxation by providing the principles that should underlie the application of the hard-to-value intangibles (HTVI) approach. The guidance includes a number of examples in order to clarify the application of the HTVI approach in different scenarios and addresses the interaction between the HTVI approach and the access to the mutual agreement procedure under the applicable tax treaty. This guidance was incorporated into the TP Guidelines for MNEs as an annex to Chapter VI.
OECD Issued Revised Guidance on the Application of the Transactional Profit Split Method (BEPS Action 10)
The guidance was incorporated into the Transfer Pricing Guidelines for MNEs, replacing the previous text on the transactional profit split method in Chapter II. The revised guidance retains the basic premise that the profit split method should be applied where it is found to be the most appropriate method to the case at hand, but it significantly expands the guidance available to help determine when that may be the case. It also contains more guidance on how to apply the method, as well as numerous examples.
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