The OECD issued guidance on the transfer pricing aspects of financial transactions1 in February 2020, which form Chapter X of the main OECD guidelines2 on transfer pricing. The financial transactions guidance covers the following topics:
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•ÌýÌýÌýÌý determining whether a loan should be regarded a loan for transfer pricing purposes (see below)
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•ÌýÌýÌýÌý identifying the commercial or financial relations (see below)
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•ÌýÌýÌýÌý intra-group loans (see below)
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•ÌýÌýÌýÌý treasury functions (see B4.152)
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•ÌýÌýÌýÌý financial guarantees (see B4.151)
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•ÌýÌýÌýÌý captive insurance
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•ÌýÌýÌýÌý risk-free and risk-adjusted rates of returns
Determination of whether a loan should be regarded a loan for transfer pricing purposes
Under the main OECD guidelines, the authoritative statement of the arm's length principle is found in the OECD Model Tax Convention on Income and on Capital Article 9 para 1. The commentary to Article 9 states that whether a loan can be regarded as a loan or as some other kind of payment is relevant to establishing the arm's
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Web page updated on 17 Mar 2025 14:01