ICC Document & publication

ICC Comments on BEPS Action 8 Implementation Guidance on Hard-to-Value Intangibles

In the context of the OECD Base Erosion and Profit Shifting (BEPS) Project mandated by the G20, ICC submitted high level and fundamental comments to the Discussion Draft of the OECD’s BEPS Action 8 Implementation Guidance on Hard-to-Value Intangibles.

The Discussion Draft provides guidance on the implementation of the approach to pricing transfers of hard-to-value intangibles described in Chapter VI of the OECD Transfer Pricing Guidelines and deals with the clarification and strengthening of the guidance on the aligning of pricing transfer outcomes with value creation, as set out in the BEPS Actions 8-10 of the 2015 Final Report.

The Discussion Draft concentrates on the guidance proposed to be included in Chapter VI. This document considers the underlying principles of the approach to the implementation of Hard-to-Value Intangibles (HTVI) while illustrating the application of this approach. This Discussion Draft is provided within a framework of other relevant guidance. In particular the revisions to Chapter I set out guidance on how accurately to delineate the actual transaction between the associated enterprises, including an understanding of the broader context of the value chain to which they contribute, and of a requirement to select the most appropriate transfer pricing method to the circumstances of the case which underpins the discussion of transfer pricing methods in Chapter II.

It is to this end that ICC has submitted comments for the OECD’s consideration.