On 24 March 2026 the UN Committee of Experts on International Cooperation in Tax Matters discussed the workstreams for transfer pricing during the current mandate of the Committee. The subcommittee on transfer pricing presented its planned workstreams for comment and approval.
The workplan for the subcommittee on transfer pricing includes the preparation of updates to the UN Practical Manual on Transfer Pricing. The workplan also involves developing guidance on transfer pricing in relation to specific industrial sectors; and developing guidance on negotiating unilateral advance pricing agreements (APAs). The transfer pricing subcommittee will also look at the attribution of profits to permanent establishments (PEs), liaising with the subcommittees on the UN Model and on the digitalised and globalised economy.
In relation to the UN Practical Manual on Transfer Pricing, amendments would be made to Chapter 5, expanding the current guidance on the benefit test. Chapter 6 of the Manual would be updated to address bundled intangibles. Chapter 9 on finance would be updated to include guidance on cash pooling arrangements and more information on the distinction between loan and equity.
The subcommittee would also produce guidance on the simplification of transfer pricing rules, including the introduction of safe harbours and other simplification measures. There would also be more material on country-risk adjustments.
Sector-specific guidance on the ICT sector would cover telecommunications; IT services (including software development); and hardware and equipment. The guidance on unilateral APAs would build on the material already produced on bilateral APAs. The guidance would explain how to design simple and effective unilateral APA programs.
Comments from participants at the meeting included the suggestion that guidance could also be produced on the tourist industry. Tourism is main source of foreign direct investment (FDI) capital in many developing countries and the application of correct transfer pricing is important in collecting the right amount of tax. Also, the tourist industry could be a major source of tax evasion and this needs to be curbed.
In relation to the attribution of profits to PEs, some participants considered that formulary apportionment should be considered as a method of allocating profits. The South Centre noted that formulary apportionment has been discussed in the intergovernmental negotiating committee (INC) on the UN Framework Convention on tax. The South Centre and the Africa group have argued for formulary apportionment in that forum.
The guidance produced by the subcommittee on transfer pricing in specific industrial sectors such as ITC, together with other sector guidance, could be included in a new section of the UN Practical Transfer Pricing Manual. They would reach a wider readership in this way than in stand-alone publications.
The workplan was approved by the Tax Committee.
