Transfer Pricing

1. US: (i) extensive guidelines. (ii) Best method rule. (iii) CPM widely used
2. UK: (i) follows OECD (ii) BEPS leader
3. Germany: (i) OECD Generally (ii) best method based on comparability (iii) limitation on TNMM
4. Brazil: (i) Does not follow OECD (ii) safe harbour rates (iii) may use secret comparables

1. Art. 7 Branch apportionment
2. Art 9 Adjustments
3. Art 25 MAP for TP disputes / or EU Arbitration convention

1. State Practices
   1. KVR summaries
2. DTCs

1. Global Formulary Apportionment
   1. (1) measuring income of MNC as a whole (2) useful in Federal States (3) Problem of partial adoption (4) common tax bases and apportionment factors
2. Arm's Length Principle
   1. (1) Objective (2) widely accepted (3) absence of comparables (4) States optionality and resulting conflicts (5) documentation burden

Attachments:

• Transfer Pricing Notes

1. 1933 Carrol Report LoN 1935 Draft Conv. 1995-2013 TP Guidelines 2008 Attribution to PEs