The disruptive economic circumstances caused by COVID-19 has made continued application of the arm’s length principle difficult for businesses. In order to provide directions to multi-national groups and tax administrations for greater tax certainty, the Organization for Economic Co-operation and Development (OECD) released “Guidance on the transfer pricing implications of the COVID-19 pandemic”. While, the Guidance provides general principles for the application of the arm’s length standard, it does address a number of challenging issues exacerbated by COVID-19.
With Q4 of India fiscal year 2020-21 on the anvil, KPMG in India hosted a webinar to discuss these OECD guidelines and practical aspects to be considered in planning for the end of Indian fiscal year 2020-21:
Senior Partner, KPMG in India