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Amendments to transfer pricing guidelines come into force — Orbitax Tax News & Alerts

On 3 July 2013, the decree of the Ministry of Finance amending the Transfer Pricing Ordinance of 10 September 2009 (Official Journal No. 160/1268) was published in Official Journal No. 768/2013. Amongst others, the decree implements the provisions of the 2010 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The amendment will become effective on 18 July 2013.

The new transfer pricing guidelines envisage, inter alia, such measures as:

-   recommendation for the tax inspectors to apply the most appropriate method of assessing profits instead of the currently applied comparable uncontrolled price method;
-   introduction of instruments for the examination by tax inspectors of business restructuring, defined as any transfer between related parties, and the outcome of such operations;
-   defining low value-added intra-group services and introducing a simplified examination of such services;
-   providing a catalogue of shareholders' costs, which should not be regarded as related to services rendered to associated companies; and
-   supplementing the provisions concerning the elimination of double taxation in relation to the adjustment of profits of associated companies.