Transfer Pricing news
Transfer pricing news covering OECD guidance, country specific documentation and audit rules, advance pricing agreements and the court cases that test how related party transactions are priced, collected from the sources AskColm monitors.
86 articles in the archive, showing the latest 50.
Why AI is reshaping tax risks for India’s GCCs
Global capability centres using artificial intelligence to deliver services are exposing multinational enterprises to new risks around permanent establishment and transfer pricing, as existing compliance frameworks prove inadequate for the challenges AI presents.
The Hidden Tariff Burden of Related-Party Trade
The article examines the tariff burden associated with related-party trade and its effects on US domestic industries and manufacturing supply chains.
Delhi ITAT: Cost-to-Cost Reimbursement for Seconded Employees Not Taxable as FTS
The New Delhi bench of the Income Tax Appellate Tribunal has ruled that salary reimbursements made on a cost-to-cost basis for seconded employees do not constitute Fees for Technical Services and are therefore not taxable as such in India. The…
Australia Broadens Application of Software Royalties Treatment
Australia's Tax Office has issued new guidance that widens the range of circumstances in which cross-border software payments can be classified as royalties, making them subject to withholding tax.
Rethinking TP controversy in a time of transformation: certainty, simplification, and scrutiny
Deloitte has published its 2026 Transfer Pricing Controversy Guide, which covers developments in transfer pricing, dispute prevention tools, and audit trends affecting controversy management globally. The guide is introduced by three Deloitte professionals and examines themes of certainty, simplification, and…
Weighing the risk: US tax reforms driving MNEs to reassess IP models
Deloitte professionals examine how changes to US tax law are prompting multinational enterprises to reconsider intellectual property and operating models centred on the US, and how European tax authorities are responding to those shifts.
Germany Clarifies Cross-Border Interest Rules
Germany's Federal Tax Court has ruled that interest payments connected to a Dutch group structure can be denied as a tax deduction in Germany under Section 4i of the Income Tax Act.
Aspiration to practicalities: what the 2026 MAP manual means for tax certainty
Deloitte's Alexander Duric and Rachel Ney examine the OECD's updated mutual agreement procedure manual, explaining how it clarifies best practices for tax dispute resolution and what it means for businesses seeking greater tax certainty.
Integration, digitalisation, and the arm’s-length principle: rethinking value creation in hospitality
Deloitte specialists examine how digitalisation, asset-light business models and integrated functions are changing transfer pricing in the hospitality sector, covering areas including management fees, central services and AI-driven intangibles.
When talent crosses borders: navigating transfer pricing challenges amid increasing workforce mobility
Deloitte's Kevin Norton and Alison Ambrose examine how OECD guidance, remote working and increased scrutiny from tax authorities are reshaping permanent establishment and transfer pricing risks for multinational enterprises, and how those businesses should respond.
Public CbCR: practical challenges and lessons learnt – insights from Poland
As public country-by-country reporting comes into effect, clear allocation of responsibilities and thorough data testing are among the good practices that multinational groups should adopt, according to an adviser at MDDP reflecting on experience in Poland.
Permanent Establishment Risk in the Philippines: Why Outsourcing and EOR Do Not Eliminate Tax Exposure
Foreign enterprises operating in the Philippines through outsourcing providers or employer of record arrangements may still be exposed to permanent establishment risk and the associated tax liabilities, as these structures do not automatically eliminate tax exposure.
A Tale of Two Secondments: Search for the Real Employer
Two recent Indian court rulings, from the Delhi ITAT and the Delhi High Court, reached opposite conclusions on the question of who constitutes the real employer of a seconded worker.
Guarantees and implicit support: a new front in transfer pricing controversy
Intercompany guarantees and implicit group support are emerging as a significant battleground in transfer pricing disputes. Tax authorities are increasingly scrutinizing whether subsidiaries receive implicit support from parent entities and how this affects arm's length pricing of financial transactions. The…
US path to amount B adoption: why IRS notice marks key step
A recent IRS notice signals a meaningful step toward the United States formally adopting the OECD's Amount B framework, which simplifies transfer pricing for baseline marketing and distribution functions. The notice outlines how Amount B's fixed-return approach could be incorporated…
Revisiting the use of statistical ranges in transfer pricing
The article revisits how statistical ranges—particularly interquartile ranges—are applied in transfer pricing comparability analyses, questioning whether current practice remains fit for purpose. It examines tensions between OECD guidance and domestic rules across jurisdictions regarding the selection of the most appropriate…
Latin America focus: TP trends in an era of heightened tax controversy
Transfer pricing controversy is intensifying across Latin America as tax authorities in Brazil, Mexico, Colombia, and other jurisdictions bolster audit capabilities and align domestic rules more closely with OECD standards. Brazil's landmark TP reform adopting the arm's length principle is…
TP auditing in the tech environment
Tax authorities are increasingly deploying advanced technology—including data analytics, AI, and automated risk-scoring tools—to conduct transfer pricing audits of technology companies and digital business models. The article explores how digitally enabled audits allow authorities to cross-reference large volumes of transactional…
Is “free” a fair price? When the absence of remuneration does not mean the absence of a transaction
This article examines transfer pricing implications when goods or services are provided free of charge between related parties, using Poland as a focal point. It challenges the assumption that zero remuneration means no taxable transaction exists, arguing that tax authorities…
Dutch Weigh Offering Source-State Service Taxes In Treaties
The Netherlands is considering updating its tax treaty network to allow source-state taxation of services, a significant shift in Dutch international tax policy. Currently, service income is typically taxable only in the recipient's residence state. Introducing source-state service taxation provisions…
Delhi ITAT: Transfer Pricing Comparables Can’t Be Excluded Merely Using a Rigid Turnover Filter
The Delhi Income Tax Appellate Tribunal (ITAT) has ruled that transfer pricing comparables cannot be excluded solely on the basis of a rigid turnover filter. The decision reinforces that comparability analysis must consider multiple functional and economic factors rather than…
The Thin Line Between Intercompany Services and Intangibles: Navigating OECD Chapter 7
This article examines the complex boundary between intercompany services and intangibles under OECD Transfer Pricing Guidelines Chapter 7. It explores how multinational groups must distinguish routine service charges from payments that may constitute intangible-related returns, a distinction with significant pricing…
Karnataka HC: TPO Can’t Discard Comparables Solely to Adopt Department’s Preferred Set
The Karnataka High Court has ruled that a Transfer Pricing Officer (TPO) cannot arbitrarily discard comparables selected during a transfer pricing analysis simply to replace them with a set preferred by the tax department. The court reinforced that comparables must…
Industrial data and transfer pricing: navigating the smart factory shift
As manufacturers adopt smart factory technologies, the data generated by industrial IoT systems, automated production lines, and digital twins is creating new transfer pricing challenges for multinationals. The article examines how intragroup transactions involving industrial data—its collection, ownership, and monetisation—must…
EY US and the unfinished business of India’s secondment doctrine
This article examines the ongoing development of India's secondment doctrine in the context of EY US, addressing how cross-border employee secondments are treated for tax purposes in India. The secondment doctrine determines whether a foreign entity deploying staff to an…
Cyprus: OECD Reshapes Transfer Pricing and Treaty Benefits
Cyprus is adapting its transfer pricing framework and tax treaty benefit rules in response to OECD developments, including BEPS-driven standards. The update examines how OECD guidance is reshaping substance requirements, arm's length principles, and access to treaty benefits for Cyprus-based…
When a Promise Becomes Taxable: What the Torrent Power Judgment Really Means for Corporate Guarantees
The Torrent Power judgment addresses a significant transfer pricing question: whether corporate guarantees provided by parent companies to subsidiaries constitute a taxable service requiring an arm's length fee. The ruling examines when a mere promise of financial support crosses the…
Seabrooke & Stausholm: How TaxTech Rewires Global Wealth Chains
Academic research by Seabrooke and Stausholm examines how tax technology is reshaping global wealth chains, exploring the intersection of digital tools, tax planning infrastructure, and international capital flows. The work analyses how TaxTech platforms and automation are restructuring the way…
DT-06-2025: Estudio sobre Inteligencia Artificial aplicada a los precios de transferencia (Ahora disponible en inglés))
CIAT has published a study (DT-06-2025) on the application of artificial intelligence to transfer pricing, now available in English. The working paper examines how AI tools and techniques can be applied to transfer pricing analysis, a significant development for tax…
Taxation in Vietnam: what foreign investors need to know
Vietnam's tax framework presents several key considerations for foreign investors. The country imposes corporate income tax at a standard rate of 20%, with preferential rates available for qualifying sectors and regions. Foreign investors must navigate withholding taxes on dividends, royalties,…
Protecting the Tax Base: KRA’s Progress in International Taxation
This article examines the Kenya Revenue Authority's (KRA) efforts to protect Kenya's tax base through international taxation measures. The KRA has been advancing its capabilities in areas such as transfer pricing, anti-base erosion strategies, and cross-border tax enforcement. The piece…
Diving into the Differences Between Tax Transparency Regimes
This article examines the differences between various tax transparency regimes, likely covering OECD-led initiatives such as the Common Reporting Standard (CRS), country-by-country reporting (CbCR), and beneficial ownership disclosure frameworks. Tax transparency regimes require multinational enterprises and financial institutions to disclose…
Allahabad HC: Objections to Draft Assessment Order Must Be Filed Before Both DRP and AO
The Allahabad High Court has ruled that taxpayers contesting a draft assessment order must file objections before both the Dispute Resolution Panel (DRP) and the Assessing Officer (AO), not just one of them. The judgment clarifies procedural requirements under Indian…
The increasing importance of ‘economic substance’ under Indian income tax laws
India's income tax framework is placing growing emphasis on economic substance requirements, reflecting a broader shift in how tax authorities assess the legitimacy of business arrangements and structures. The article examines how Indian tax law is evolving to scrutinize whether…
Can an individual fall within the scope of transfer pricing? Yes – and sooner than you think
This article examines whether individuals can fall within the scope of transfer pricing rules, with a focus on Poland. It explores scenarios where individual taxpayers — such as sole traders, partners in partnerships, or persons conducting related-party transactions — may…
VAT Committee: Transfer Pricing Adjustments at Variable Prices May Be Relevant
The EU VAT Committee has issued guidance indicating that transfer pricing adjustments in variable pricing arrangements may carry VAT relevance. The opinion addresses whether post-transaction price adjustments made for transfer pricing purposes should also trigger VAT corrections, a complex intersection…
Romania Introduces New Transfer Pricing Documentation Requirements under Order 828/2026
Romania has introduced new transfer pricing documentation requirements under Order 828/2026, updating obligations for taxpayers operating in the country. The order establishes revised rules governing the preparation and submission of transfer pricing files, likely including thresholds, content requirements, and deadlines…
N.Y. Times: Crocs Has a Trick for Dodging Taxes: a Tiny Office in Malta
Crocs, the footwear company, reportedly uses a small office in Malta to reduce its tax burden, according to a New York Times investigation. The arrangement highlights how multinational corporations exploit low-tax jurisdictions and treaty networks to shift profits and minimize…
Beyond the price: key transfer pricing controversies in the Andean region
This article examines key transfer pricing controversies across the Andean region, covering countries such as Colombia, Peru, Ecuador, and Bolivia. It explores enforcement trends, dispute resolution mechanisms, and the challenges multinationals face regarding intercompany pricing, substance requirements, and compliance with…
TP in the Southern Cone: substance, business transformation, and global tax challenges
This article analyzes transfer pricing developments in the Southern Cone, focusing on Argentina, Chile, Uruguay, and Paraguay. It addresses the growing emphasis on economic substance, the tax implications of business transformations such as supply chain restructurings, and the impact of…
Multinationals brace for more tax disputes: Baker McKenzie survey
A Baker McKenzie survey reveals that multinational corporations are anticipating a significant rise in tax disputes globally. The research highlights growing concerns around transfer pricing challenges, increased audit activity by tax authorities, and the complexity introduced by Pillar Two implementation.…
Key challenges in the transfer pricing of financial transactions
Financial transactions represent one of the most complex areas of transfer pricing, encompassing intercompany loans, cash pooling, guarantees, and treasury functions. Key challenges include determining arm's length interest rates, applying the OECD's 2020 guidance on financial transactions, assessing credit ratings…
TP in Peru: where global profitability policies meet a transaction-by-transaction regime
Peru's transfer pricing regime requires a transaction-by-transaction analysis, creating tension with multinational groups that apply global profitability policies across their operations. The article examines how Peru's tax authority evaluates intercompany transactions individually rather than accepting group-wide benchmarking approaches, complicating compliance…
How the Keysight Decision Could Affect the Kwong Appeal
The Keysight decision is a significant transfer pricing case that could influence the outcome of the Kwong appeal. The article analyzes how the Keysight ruling, which addressed intercompany pricing arrangements and the arm's length standard, may set precedent affecting the…
A Polish tax roadmap for foreign investors based on how audits evolve
This article provides a practical guide for foreign investors navigating Poland's tax environment, structured around how Polish tax audits typically evolve. It covers key risk areas that trigger audits, including transfer pricing documentation, VAT compliance, and withholding tax obligations. The…
CIAT apoya mesa técnica regional para el intercambio de experiencias en precios de transferencia
CIAT is supporting a regional technical roundtable focused on the exchange of experiences in transfer pricing among Latin American tax administrations. The initiative aims to strengthen cooperation and technical capacity in transfer pricing enforcement and policy across the region, bringing…
Transfer Pricing and VAT Developments
This article examines recent intersecting developments in transfer pricing and VAT, highlighting how intragroup transactions are increasingly scrutinized under both regimes simultaneously. Tax authorities are aligning transfer pricing adjustments with VAT consequences, particularly regarding year-end true-up payments and intercompany service…
One Ruling, Many Jurisdictions: Stellantis VAT Judgment Reaches Swiss Tax Guidance
The Stellantis VAT judgment has generated cross-border ripple effects, with Swiss tax authorities issuing guidance in response to the ruling. The case examines the VAT treatment of transfer pricing adjustments, a long-contested area where intercompany price corrections can trigger VAT…
UAE Flips the Valuation Problem Upside Down: A Top-Down Method for Costing Deemed Supplies of Services
The UAE has introduced a top-down valuation methodology for deemed supplies of services, addressing a longstanding challenge in VAT compliance. Rather than building up costs from scratch, businesses can work downward from a known market or retail value to determine…
2025 Transfer Pricing Year in Review
KPMG's 2025 Transfer Pricing Year in Review examines how multinational enterprises are navigating a rapidly evolving global transfer pricing landscape shaped by digital disruption and regulatory change. The report covers key developments including the continuing implementation of OECD Pillar Two…