The OECD is reportedly considering the drafting and publication of guidance to assist companies and tax administration in dealing with transfer pricing issues that have arisen in relation to the COVID-19 pandemic. The guidance is likely to be provided in the form of frequently asked questions (FAQ) on how the OECD's transfer pricing guidelines can be applied in particular situations where COVID-19 has had an impact, such as benchmarking of independent parties and multi-year averages, which have been greatly affected (skewed) by the pandemic.
Delegates from the OECD's Working Party No. 6 on transfer pricing and the Forum on Tax Administration are to hold discussions with the OECD Secretariat this week on whether there is enough capacity and interest to prepare the guidance. If a decision is made to move forward on the guidance, it is expected that a public consultation would be held in the fall and the final guidance would be published before the end of the year.
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