Published 21 June 2018   Download the report  English

 

About

This report contains guidance for tax administration on the application of the approach to hard-to-value intangibles (HTVI), under BEPS Action 8. This new guidance present the principles that should underlie the application of the HTVI approach by tax administration, with the aim of improving consistency and reduce the risk of economic double taxation. The new guidance also includes a number of examples clarifying the application of the HTVI approach in different scenarios; and addresses the interaction between the HTVI approach and the access to the mutual agreement procedure under the applicable tax treaty.

This report responds to the mandate contained in the 2015 BEPS Actions 8-10 report on Aligning Transfer Pricing Outcomes with Value Creation to develop guidance for tax administrations on the application of the approach to hard-to-value intangibles (HTVI). The HTVI approach was adopted as part of the Actions 8-10 Report in 2015 and it was subsequently incorporated in Chapter VI of the OECD Transfer Pricing Guidelines.

The new guidance for tax administrations on the application of the HTVI approach is aimed at reaching a common understanding and practice among tax administrations on how to apply adjustments resulting from the application of the approach to HTVI. The guidance includes a number of examples to clarify the application of the HTVI approach in different scenarios and addresses the interaction between the HTVI approach and the access to the mutual agreement procedure under the applicable tax treaty. This guidance has been formally incorporated into the Transfer Pricing Guidelines as an annex to Chapter VI.

 

NEWS

• 16/12/2020 - OECD publishes information on the state of implementation of the hard-to-value intangibles approach by members of the Inclusive Framework on BEPS
• 21/06/2018 - OECD releases new guidance on the application of the approach to hard-to-value intangibles and the transactional profit split method under BEPS Actions 8-10

 

FURTHER INFORMATION

• OECD work on BEPS, tax treaties, and transfer pricing
• Contact us: ctp.contact@oecd.org
• Follow-us on Twitter @OECDtax