The UK Government has published an Order, which would update the definition of “transfer pricing guidelines” in the UK legislation.
The Taxation (International and Other Provisions) Act 2010 Transfer Pricing Guidelines Designation Order, 2018, will update the definition of “transfer pricing guidelines” to incorporate the updated version of the OECD’s Transfer Pricing Guidelines published in July 2017.
The 2017 update to the Transfer Pricing Guidelines reflects a consolidation of the changes resulting from the base erosion and profit shifting project. The Order designates the new 2017 version in place of the version referred to in section 164(4)(a) of the Taxation (International and Other Provisions) Act, 2010.
The Order will come into force on March 23. For corporate tax purposes, the Order will have effect in relation to accounting periods beginning on or after April 1.