Our transfer pricing specialists (Pieter, Tomas, Jurie and Tomasz) attended the ITR (International Tax Review) TP Forum in Amsterdam last week. Very useful insights from many different in-house tax and transfer pricing professionals, as well as transfer pricing advisors from around the globe. It was also very nice to meet all our ‘co-transfer pricing enthusiasts’ from around the world to exchange experiences and practices. A snapshot of some interesting topics that were discussed can be found below:
Transfer pricing aspects of financial transactions
- A meaningful panel discussion on ‘Transfer pricing challenges arising from intercompany financing transactions’, covering amongst others the risk of recharacterisation (loan as equity) in the Netherlands as well as the risks associated with cash pools.
- Furthermore, Larry van Den Hof (TP coordination group member for taxes and large enterprises at the Dutch Ministry of Finance) shed some light on the recently issued Dutch transfer pricing decree in relation with financial transactions.
OECD keynote address and interview: Analysis of the current and future transfer pricing landscape
- Alexander Duric (Transfer Pricing Adviser in the Tax Treaty & Transfer Pricing Unit of the OECD), interviewed by Frank Schwarte, shared some great insights on pillar one as well as the potential impact beyond pillar one (amount A and amount B).
- Also, a brief update was provided on OECD’s and Brazil’s work together to align Brazil’s transfer pricing rules to the international standard.
Future of transfer pricing post Pillar One – how will this apply to businesses?
- Global tax leaders recognise and appreciate the hard work and strong efforts by the OECD and the members of the Inclusive Framework to reach a global agreement and provide for clear guidance for implementation.
- Besides, the global tax leaders also criticised the complexity of pillar one rules and their scope, and indicated that a failure to address the complexity of the rules could jeopardise the success of the OECD’s project.
Evolving transfer pricing approaches – how to manage change within existing business models
- Very relevant and topical discussions on new global tax developments that substantially impact existing business models. Especially, the so-called ‘hire/work-from-anywhere’ policies, which have gained increased traction during the Covid-pandemic, will provide for challenging situations that require a sustainable TP approach.
- Hiring (key) employees in countries other than the historical (entrepreneurial or routine) locations of a group might result in tax presence in new jurisdictions and potentially the requirement to increase the level of remuneration of such fixed establishments (maybe even up to the level of an entrepreneurial remuneration).
If you have any questions about transfer pricing or international transfer pricing developments, check our website and/or please do not hesitate to contact one of our transfer pricing specialists:
