Transfer Pricing udfordringer ved interne services efterpræciseringer og tilføjelser i OECD’s TPG for 2017

Jonas Birch Lastein

Student thesis: Diploma thesis


The OECD transfer pricing guidelines (TPG) have been extended in 2017. The financial year of 2018 is the first full year, where the MNE’s can use the new additions and clarifications. The clarifications in the TPG 2017 is just supplementary instructions to the guidelines from 2010 and can be used backwards as well as forwards, the new additions to TPG 2017 can only be used forward. The project will focus on the additions in chapter 1, 6 and 7 of TPG 2017.
First there will be an analysis and explanation of the main rules, new additions and clarifications in the three chapters, so the MNE’s will know how to handle the guidelines. Thereafter, the constructed case will illustrate some examples of how to handle the guidelines from the perspective of a Danish parent company. The conclusion will sum up all the most important instructions for the MNE’s and enable them to handle the guidelines themselves.
Chapter two, three and four sums up the most important things about the arm’s length price, intangibles and internal services. The comparable analysis is the center of determining the arm’s length price and with the new 6-step analysis it has been even more detailed than previously. The DEMPE-functions is the new topic in relation to intangibles. Their purpose is to help the MNE’s with their allocation of risk in accordance with the intangibles. In relation to internal services, low value-adding services is the new topic for the MNE’s. The new topic gives the MNE’s the opportunity to use the simplified method which requires less documentation from the MNE’s.
The constructed case about the MNE Konsulent services will discuss different examples of services and intangibles and how to handle them in accordance with the transfer pricing guidelines from OECD. The first example will discuss low value-adding services vs value-creating services performed by an internal service provider. The second, the use of another company’s benefits with regards to approval of vendors and the third, the benefit of being the second and third company in the MNE with regards to the customer base that have been accumulated by the first company in the MNE. The last example analysis the creation of a new software that is based on machine learning and the company’s knowledge of the market for consultants.
The conclusion will sum up all the most important parts of the project with focus on the new additions in the chapters 1, 6 and 7. The conclusion will also highlight the most important guidance to the Danish MNE Konsulent Services. The perspectivation will be focusing on the issues in applying the simplified method that tax payers, advisors and authorities have highlighted to OECD.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2019
Number of pages79