UN tax committee to update to key transfer pricing manual for developing countries

By Julie Martin, Editor, MNE Tax (first published on MNE Tax)

The next edition of the United Nations Practical Manual on Transfer Pricing for Developing Countries will include a new chapter on financial transactions, substantial revisions current guidance on the transactional profit-split method, and new material on centralized procurement functions, according to a newly-released UN document that summarizes the most recent meeting of the Committee of Experts on International Cooperation in Tax Matters.

According to the UN document, members of a subcommittee responsible for updating the UN transfer pricing manual said at the October 16-19 Committee of Experts meeting that the new financial transactions chapter will cover intragroup loans and financial guarantees.

The chapter will address the importance of corporate financing decisions among multinational groups and how those decisions could lead to tax base erosion, said subcommittee member, Monique van Herksen.

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