OECD publishes its guidance on the transfer pricing implications of the COVID-19 pandemic

Today, at 11:00 a.m., the Organisation for Economic Co-operation and Development (OECD) released the long-awaited document “Guidance on the transfer pricing implications of the COVID-19 pandemic”. The guidance is a response to numerous doubts raised by taxpayers and tax administrations related to the extraordinary circumstances we had to face in 2020.

The special economic conditions caused by COVID-19 and the related government assistance programmes give rise to substantial doubts connected with application of the arm’s length principle, both among taxpayers and for tax administrations. Therefore, the OECD published special guidance concerning the application of the arm’s length principle with a view to the problems triggered by the pandemic.

The COVID-19 guidance focuses on four issues which, in OECD’s opinion, are the priority:

  1. Comparability analysis
  2. Losses caused by COVID-19 and the allocation of specific costs incurred due to the pandemic
  3. Government assistance programmes
  4. Advance Pricing Agreements (APA)

Release of the document before the end of 2020 will be useful particularly for those taxpayers who want to adjust their transfer prices for 2020.

OECD emphasizes that the guidance should be regarded as an elaboration and commentary on the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2017) rather than as an attempt at providing detailed guidelines that go beyond the latter document.

For the full text of the report go to: https://read.oecd-ilibrary.org/view/?ref=1059_1059931-t94e20hrqo&title=Guidance-on-the-transfer-pricing-implications-of-the-COVID-19-pandemic

KONTAKT

Arkadiusz Żurawicki Partner, Warsaw

E: arkadiusz.zurawicki@pl.Andersen.com
T: +48 22 690 08 71
M: +48 508 092 989

Michał Wilk Partner, Katowice

E: michal.wilk@pl.Andersen.com
T: +48 32 731 68 69
M: +48 500 023 685

Weronika Guz Manager, Warsaw

E: weronika.guz@pl.Andersen.com
T: +48 22 690 08 88

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