The Platform for Collaboration on Tax (PCT) has released a practical toolkit to support the implementation of transfer pricing documentation requirements by developing countries.
The toolkit – released on January 19, 2021 – serves as a sourcebook of guidance on implementing transfer pricing documentation requirements for developing countries. The toolkit compiles essential information on transfer pricing documentation and analyses policy choices and legislative options.
Readers can find sample legislation as well as examples and practices from over 30 countries and additional approaches to transfer pricing documentation in the toolkit.
The toolkit aims to help countries implement effective transfer pricing documentation requirements so that they can protect their tax bases, reduce profit shifting, and raise much-needed revenues for the recovery phase.
By providing real-life examples and practices, the toolkit shows that a robust and clear transfer pricing documentation regime helps tax administrations collect the necessary information to ensure compliance while minimizing compliance burdens on business.
The toolkit considers extensive comments received from countries and stakeholders during the public consultation process in 2019. Following the launch, the transfer pricing documentation toolkit will be presented by an expert panel at a webinar in February 2021.
The PCT is a joint initiative of the International Monetary Fund, the OECD, the United Nations, and the World Bank Group.
