Store danske multinationale koncerners transfer pricing-dokumentation

Julie Nyboe Andersen

Student thesis: Master thesis


It is estimated that 60-­‐70% of all the world’s trade takes place between intra-­‐group companies. Transfer pricing is therefore a very important topic on the international scene. In recent years multinational enterprises have avoided taxation in their home countries by pushing activities abroad to low or no tax jurisdictions. OECDs has therefore created Action Plan on Base Erosion and Profit Shifting that identifies a series of domestic and international actions to address the problem. One of the 15 actions, which the Action Plan addresses, is Action 13 regarding transfer pricing documentation. Action 13 has lead to changes in the OECD Transfer Pricing Guidelines chapter V regarding Documentation. The new chapter V was first introduced in September 2014 and OECD published the final version in October 2015. This chapter V specifies that transfer pricing documentation must consist of three files: a Master file, giving a overview of the multinational group business, a Local file, providing detailed information relating to specific intercompany transactions and a Country-­‐by-­‐ Country report containing aggregate tax jurisdiction-­‐wide information relating to the global allocation of income, taxes paid and location of economic activities. The Country-­‐by-­‐Country report is to be exchanged between the countries in which the multinational enterprise has entities. Because Base Erosion and Profit Shifting is an international problem it is important that OECDs guidelines are implemented effectively and consistently in all the OECD member states. This paper examines the new transfer pricing documentation rules and the impact on Danish law and for Danish multinational enterprises with annual consolidated group revenues of more than 5,6 mia. DKK. In Denmark the implementation of the rules are in progress at the moment, and in the end of December 2015 a new law was approved, implementing the Country-­‐by-­‐Country report in Danish law. Denmark will follow the international guidelines and templates set by OECD. The draft Ministerial Order of “dokumentation af prisfastsættelsen af kontrollerede transaktioner” realised for comments 8. December 2015, implements the Master file and Local file in Danish law and will be approved and publish in the spring of 2016. Especially the Country-­‐by-­‐Country report is new to Danish multinational enterprises and will create large changes to Danish law, providing a new Ministerial Order containing the specific rules for the Country-­‐by-­‐Country reporting, which will probably be approved and published during the summer of 2016. Danish multinational enterprises with annual consolidated group revenues of more than 5,6 mia. DKK must file all three documents. These companies will face compliance costs in producing this information. However what worries the large Danish companies most is the cost of defending their transfer pricing position, if OECDs guidelines are not implemented consistently throughout the member states. An inconsistent implementation will lead to discrepancy between the national rules of the member states and different interpretation of the documentation demands throughout the Union.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2016
Number of pages83