The game changer

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

The game changer

This year has been a game changer for global transfer pricing. With the final release of the UN Practical Transfer Pricing Manual for Developing Countries in May and with consistent developments in the OECD's transfer pricing aspects of intangibles project – not to mention its new Base Erosion and Profit Shifting (BEPS) project – the goalposts for companies' transfer pricing compliance requirements are changing.

Transfer pricing has also been brought further under public scrutiny by parliamentary hearings in the UK and the US in particular, which have focused on the tax affairs of multinationals such as Amazon, Google, Apple and Starbucks.

At the crux of these interrogations has been how tax planning by these companies minimises tax payments in the US and the UK so effectively, while making huge profits.

However, while the public and politicians are displeased with the level of the companies' tax payments, the taxpayers say they are all acting within the boundaries of the law, and there is no evidence to dispute that their tax planning is anything but legal. The problem lies, they argue, in how the laws are drafted.

The OECD has admitted that international guidelines have not kept pace with business and that the digital industries will make a good test case for its BEPS project. It is unsurprising, therefore, that, bar Starbucks, the majority of the companies that have faced the fiercest criticism for their tax planning are in the digital industries, where it is harder to evaluate what constitutes a permanent establishment for one thing.

While it is still difficult to say what the impact of the BEPS project will be on transfer pricing, the mere publication of the UN manual has had a more tangible impact, not least because of the inclusion in it of separate country chapters from Brazil, China, India and South Africa.

One taxpayer, Han Jin Ping of Siemens China, explains what impact the China chapter will have on companies' transfer pricing affairs in this Global Transfer Pricing supplement. Combined with the useful guides from advisers about BEPS at an international and EMEIA level, and country guides from Chile, Germany, Mexico, Russia, Taiwan, Ukraine and the US, taxpayers can get a global overview of the most important changes to transfer pricing, from a developed and developing country perspective.

We hope you find this transfer pricing supplement both useful and informative. For more in-depth coverage of all the most recent transfer pricing developments around the world, including controversy case analyses, regulation updates and jurisdictional guides to audit, documentation and intangible assets, visit www.TPWeek.com.

Sophie Ashley

Online editor, International Tax Review

Managing editor, TPWeek.com

more across site & shared bottom lb ros

More from across our site

Despite the conviction of Jessa Dabalos, the Tax Practitioners’ Board’s investigative work continues with five outstanding PwC scandal probes
Heads of tax need to push their teams forward as strategic business advisers to add value across their organisations, says Sandy Markwick
Scott Bessent reportedly felt undermined by Musk naming Gary Shapley as acting IRS commissioner; in other news, Baker Tilly will combine with a top 15 US firm
The promise of nine years’ tax certainty and a ‘rational and pragmatic’ government process makes APAs a no-brainer, Indian tax advisers tell ITR
Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Shapley would be the fourth person to hold the job this year; in other news, UK tax advisory firm MHA raised fewer funds than expected from its London IPO
The US needs to be involved in pillar one for there to be more international acceptance of the project, Michael Masciangelo says
Gift this article