Intercompany operations and contractual terms An in-depth consideration regarding substance One of the procedures prior to confirming the arm’s length value of an intercompany transaction is the analysis of contractual terms in the operation. Contrary to what occurs among independent third parties, it is possible that among related parties the incentives to reflect contractual terms
One of the novelties resulting from the OECD/G20 action plan vs. base erosion and profit shifting (the BEPS plan) is the suggestion of a safe harbor in relation to low value-added intercompany services. Said safe harbor, under certain limitations, would enable the transfer of certain types of support services (not associated in any way to
New transfer pricing documentation standard One of the most visible actions of the BEPS plan is Action 13 (country by country report and transfer pricing documentation). Action 13 has taken effect, modifying Chapter V of the OECD Transfer Pricing Guidelines (OECD Guidelines) of 2017, and in Mexico, by incorporating article 76-A to the Mexican Income
Intangibles: New BEPS Guidelines One of the main concerns of the OECD regarding the mechanisms of base erosion employed by taxpayers has to do with the use of intangibles, in particular regarding the distortion of their value in controlled transactions, or even their strategic allocation in preferential regimes, without considerations of transfer pricing rules that
