OECD GUIDANCE ON HARD-TO-VALUE INTANGIBLES

The OECD published a discussion draft on Jun 4, 2015, on the arm's-length pricing of intangibles when valuation is highly uncertain at the time of the transaction, or the intangibles are hard to value. The discussion draft is part of Action Item 8 of the OECD's base erosion and profit shif...

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Bibliographic Details
Published in:Journal of International Taxation 2015-09, Vol.26 (9), p.55
Main Authors: Verlinden, Isabel, De Preter, Loek, Katz, Adam, Pena, Horacio, Dykes, Ian, Van De Gucht, Jonas, Karayannis, Marios, Skewes-Cox, Peter, Collier, Richard, Olson, Pam, Van Weeghel, Stef, Ernick, David, Greenfield, Phil
Format: Article
Language:English
Subjects:
Asymmetry
Intangible assets
International
International taxation
Tax avoidance
Taxpayers
Transfer pricing
Valuation
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Summary:The OECD published a discussion draft on Jun 4, 2015, on the arm's-length pricing of intangibles when valuation is highly uncertain at the time of the transaction, or the intangibles are hard to value. The discussion draft is part of Action Item 8 of the OECD's base erosion and profit shifting (BEPS) Action Plan. Action Item 8 is focused on assuring that transfer pricing outcomes with respect to intangibles are in line with value creation. According to the OECD, special considerations are necessary to ensure that tax administrations can determine whether taxpayers' pricing arrangements are at arm's length. The discussion draft is an improvement on the prior version to the extent that some of the more radical special measures have been eliminated. It relies much more heavily on "commensurate with income" type rules, allowing for use of information in years subsequent to the transfer, to determine the pricing of intangibles.
ISSN:1049-6378