ICC Document & publication

ICC Response to OECD BEPS Discussion Draft on the Revised Guidance on Profit Splits

In the context of the OECD Base Erosion and Profit Shifting (BEPS) Project mandated by the G20, ICC submitted high level and fundamental comments on the OECD’s Discussion Draft on the Revised Guidance on Profit Splits.

ICC submitted high level and fundamental comments to OECD’s Discussion Draft on the Revised Guidance on Profit Splits.

The Discussion Draft deals with the clarification and strengthening of the guidance on the transactional profit split method, 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 II, and 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. In addition, the revisions to Chapter VI include relevant guidance on identifying and evaluating intangibles.

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