The United Nation Practical Manual on Transfer Pricing for Developing Countries was launched and distributed in digital format on 7th April 2017. The TP Manual provides a great assistance to the developing countries to counter and mitigate the risks of profit shifting.
The updated version adopted a new format. The manual is divided into four (4) parts for better clarity and understanding:
- Part A: This section related to the Transfer Pricing in a global environment
- Part B: The guidance on design principles and policy considerations
- Part C: The practical implementation of a transfer pricing regime in developing countries; and
- Part D: Country practices. This section includes other statements updated and presented by Brazil, India, China and South Africa.
Apart from its presentations and changes to the manual, the 2nd edition of the UN Transfer Practical Manual on Transfer Pricing also includes some new chapters on intra-group services, cost contribution arrangements, the treatment of intangibles, significant updates of other chapters, etc.
In short, this is a timely and essential update provided by the United Nations for the developing countries whom wishes to adopt, implement or further improve the transfer pricing regulations.