OECD: Guidance on transfer pricing implications of COVID-19 pandemic

OECD: Transfer pricing implications of pandemic

The Organisation for Economic Cooperation and Development (OECD) today released guidance that is intended to clarify and illustrate the practical application of the arm's length principle to unique fact patterns and specific challenges resulting from the coronavirus (COVID-19) pandemic.


According to an OECD release, the guidance—Guidance on the transfer pricing implications of the COVID-19 pandemic—was developed and approved by the 137 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting and provides clarification and support for both taxpayers and tax administrations as they evaluate and administer the application of transfer pricing rules for periods affected by the COVID-19 pandemic.

Four priority issues identified and covered in the guidance are:

  • Comparability analysis
  • Losses and the allocation of COVID-19-specific costs
  • Government assistance programs
  • Advance pricing agreements (APAs)

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