The tax authority of Belgium has published a draft Circular on the 2017 update to the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing (TP) Guidelines. On 9 November 2018, the draft Circular was published by the Belgian tax authority according to the principles of the 2017 OECD Transfer Pricing Guidelines and to the arm’s length principle.
The Circular provides an overview of the updated chapters of the OECD Transfer Pricing Guidelines and briefly discusses:
- Chapter 1: The arm’s length principle;
- Chapter 2: Transfer pricing methods (including the revised guidance on the profit split method, published in June 2018);
- Chapter 3: The comparability analysis;
- Chapter 6: The special considerations for intangibles;
- Chapter 8: The special considerations for intra-group services (including a discussion on low value-adding intra-group services);
- Chapter 8: The cost contribution arrangements; and
- Chapter 9: Transfer pricing aspects of business restructurings.
The draft Circular suggests how the Belgian tax authority would apply the 2017 OECD Transfer Pricing Guidelines. The deadline for submitting comments on the draft Circular closes on December 12, 2018.
