Transfer Pricing Alert

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Transfer Pricing Alert December 2015 Issue has been released.

 EY - TP Alert December 2015
(pdf, 3.04mb)  


  • Korea 2015 Amendment of the LCITA and PED: Details of requirements on submission of MNE’s foreign transactions
    Korean companies and foreign companies with a domestic place of business that have transactions with foreign related parties must submit “International Related Party Transaction Integrated Report” including the master file and local file in line with the OECD recommendations under BEPS Action 13 in filing the corporate income tax return for the fiscal years beginning on or after 1 January 2016, in accordance with the amendment to the Law for the International Coordination of International Tax Affair (LCITA), enacted on 15 December 2015. A draft presidential enforcement decree (PED) providing guidance specifying applicable entities, contents of the report, filing method and process was announced by the Ministry of Strategy and Finance (MOSF) on 23 December 2015.

  • India India and South Korea signs a new Memorandum of Understanding (MOU) on suspension of tax collection during pendency of Mutual Agreement Procedure (MAP)
    On 9 December 2015, India’s Central Board of Direct taxes (CBDT) and Korea’s National Tax Service (NTS) signed a new Memorandum of Understanding to suspend the tax collection during the pendency of MAP.

  • China Tax Authorities issue groundbreaking consultation draft to update transfer pricing rules in a Post-BEPS environment
    On 17 September 2015, China’s State Administration of Taxation (SAT) issued a consultation draft circular Implementation Measures for Special Tax Adjustments, which would replace the existing Guoshuifa [2009] No. 2 (Circular 2).
    The consultation draft incorporates the internationally accepted arm’s length principle and, in many instances, closely mirrors guidance issued in the course of the G20/Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) project. Notwithstanding this, there are still many aspects of the consultation draft that have a distinctly Chinese approach, such as the strong views on location savings, market premium and other location specific advantages (LSAs). The divergences from BEPS guidance are as informative as the areas of consistency.

  • India India finalizes transfer pricing rules on use of arm’s length range and multiple year data
    On 19 October 2015, India’s Central Board of Direct taxes (CBDT) finalized and issued the amended rules on arm’s length price (ALP) range and multiple year data, following the CBDT’s issuance of rules on 21 May 2015.


 TP Alert 2015 Issues
October 2015 (pdf, 3.25mb)
  • OECD Actions 8-10 – Transfer pricing aspects
  • Republic of Korea Korean taxpayers won the revocation litigation for inter-company guarantee transaction
August 2015 (pdf, 2.4mb)
  • Republic of Korea 2015 Amendments of the Korean transfer pricing documentation rules following BEPS Action Plan 13
  • US US IRS issues updated guidance on requesting and obtaining an APA
  • Australia Australia releases draft law implementing country- by-country reporting and increasing penalties for tax avoidance and transfer pricing
July 2015 (pdf, 5.6mb)
  • OECD BEPS OECD holds final public consultation on BEPS Actions 8-10 on transfer pricing
  • Australia Australian Taxation Office says new transfer pricing rules provide a different lens for examining cross-border transactions, ATO expectations for Australian subsidiaries of multinational groups
  • Republic of Korea Amendments to the Enforcement Decree of the Adjustment of International Taxes Act (“AITA")
June 2015 (pdf, 2mb)
  • Indonesia APA is possible in Indonesia
  • Canada Canada Revenue Agency releases guidance on role of multiple-year data in transfer pricing analyses
  • Thailand Thailand releases draft transfer pricing act
May 2015 (pdf, 7.3mb)
  • China China issues transfer pricing rules on outbound related party fee payments
  • Taiwan Taiwan proposes amendments to transfer pricing guidelines
  • E.U. Automatic Exchange of Information on Tax
  • Poland Poland amends transfer pricing documentation requirement as of 2016
April 2015 (pdf, 4.7mb)

2014 TP developments & 2015 anticipated TP developments

  • Asia Pacific
    • Australia • China • Hong Kong • Indonesia • Japan • Malaysia • Philippines • Singapore • Taiwan • Vietnam
    • Czech Republic • France • Germany • Italy • Luxembourg • Russia • Slovakia • Spain • Sweden • Turkey • South Africa
  • America
    • Brazil • Mexico • United States
March 2015 (pdf, 10.8mb)
  • OECD BEPS OECD issues implementation guidelines for country-bycountry reporting under BEPS Action 13
    • Executive summary
    • Detailed discussion: Background, Overview, Timing of preparation and filing of the CbC Report, MNC groups required to file the CbC Report, Necessary conditions for obtaining and use of the CbC Report, Framework for government- to-government mechanisms to exchange CbC Reports
    • Implications
  • US/India US and India Tax Authorities agree on framework for resolving certain double tax cases
    • The India APA program
February 2015 (pdf, 774.4kb)
  • Singapore 2015 New Transfer Pricing Guidelines 
    • Part I - Transfer pricing principles and fundamentals: Transfer pricing principles, Transfer pricing documentation
    • Part II - Transfer pricing administration
    • Part III - Other issues: Transfer pricing adjustments, Related party loans and related party services, Attribution of profit to permanent establishment
    • Closing remarks 
January 2015 (pdf, 1.4mb)
  • OECD BEPS, Action Plan 10 OECD releases Discussion Draft on cross-border commodity transactions under BEPS Action 10
  • China Transfer Pricing Regulations China issues administrative guidance on general anti-avoidance rules
  • Australia Transfer Pricing Regulations Australian Tax Authority issues final transfer pricing rulings on documentation and penalties


January 2015 Special (pdf, 4.2mb)
  • Korea
    • 2014 Essential guide to contemporaneous transfer pricing (“TP”) documentation in Korea
    • Increase in importance of preparing contemporaneous TP documentation in Korea
    • Recent announcement on BEPS Action Plan 13
    • Contemporaneous TP documentation “Q&A”

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