Transfer pricing toolkit for developing nations’ tax systems

26 Jun 17

Developing countries looking to better protect their tax bases can access support through a toolkit backed by the International Monetary Fund, OECD, UN and World Bank.

The ‘Toolkit for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analyses’ has been produced by the Platform for Collaboration on Tax and is intended to help developing countries overcome a lack of data needed to implement transfer pricing rules.

According to the World Bank: “This data is needed to determine whether the prices the enterprise uses accord with those which would be expected between independent parties. The guidance will also help countries set rules and practices that are more predictable for business.”

The toolkit is part of a series of documents being devised by the platform to help developing countries design or administer strong tax systems.

It was developed after a request by the G20’s Development Working Group, following concerns over transfer pricing – the prices corporations use when they make transactions between members of the same group.

How these prices are set has impacts significantly on the amount of tax an individual government can collect from these multinational corporations.


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