--> News and mailing
Main page > About the company > News and mailing > Jurisdictions news > International Chamber of Commerce issued Statement on Substance Requirements for Transfer Pricing

International Chamber of Commerce issued Statement on Substance Requirements for Transfer Pricing


				15.06.2017
						

The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention) was signed by 68 governments not long ago. The concept of “economic substance” has attracted attention in a number of countries, because of the absence of definition of the concept. This fact may lead to uncertainty and misunderstandings between subject to legal relations.

The International Chamber of Commerce prepared Statement on Substance Requirements for Transfer Pricing, which contains an overview of problems and obstacles caused by different interpretations of the concept, at the same time emphasizing the importance of applying existing legislation.

“Economic substance” is the concept, in which a transaction can be considered valid only if it has certain economic purpose and solely serves as a mean to reduce tax liability.

To avoid uncertainty governments have to adequately estimate business situation of multinational companies, namely to take into account point of view of the government-partners.

Source: https://cdn.iccwbo.org/content/uploads/sites/3/2017/05/ICC-Policy-Statement-on-substance-requirements-for-transfer-price.pdf

Back to the list news

Quickly and confidentially.
A qualified expert will give you a free consultation by telephone, help to determine the position and make an appointment at any time that suits you.
Call just now by phone: +44 799 038 1400
E-mail us: london@hbcomp.co.uk


News

06/27/2017 11:34:00

Pacific Agreement: elimination of barriers

On June 14, 2017 the Ministry of Foreign Affairs and Trade of Aust ...

Read more

06/26/2017 19:42:00

Foreign companies may obtain the information from the Unified State Register of Legal Entities in electronic form

The Federal Tax Service of the Russian Federation published the Le ...

Read more

06/15/2017 19:09:00

International Chamber of Commerce issued Statement on Substance Requirements for Transfer Pricing

The Multilateral Convention to Implement Tax Treaty Related Measur ...

Read more