OECD: Transfer pricing (BEPS Actions 8, 9 and 10)

OECD: Transfer pricing (BEPS Actions 8, 9 and 10)

The Organisation for Economic Cooperation and Development (OECD) today released a discussion draft of proposed revisions to Chapter 1 of the OECD Transfer Pricing Guidelines that relate to risk, recharacterization, and special measures—pursuant to Actions 8, 9 and 10 of the OECD’s base erosion and profit shifting (BEPS) project.

Related content

BEPS Actions 8, 9 and 10 (Assure that transfer pricing outcomes are in line with value creation)

The OECD announced that today’s discussion draft [PDF 315 KB] under BEPS Actions 8, 9 and 10 is divided into two parts:

  • Part I contains a proposed revision to Section D of Chapter I of the Transfer Pricing Guidelines. The proposals focus on the importance of accurately delineating the actual transactions, and include guidance on the relevance and allocation of risk; determining the economically relevant characteristics of the controlled transaction; and on recharacterisation or non-recognition of transactions.
  • Part II provides options for some special measures, pursuant to the BEPS Action with regard to intangible assets, risk and over-capitalisation. A series of questions relating to all options has been set out, and the OECD release states that responses to these questions will be taken into account when considering the appropriateness and design of each option.

Comments concerning this discussion draft for BEPS Actions 8, 9 and 10 are due by 6 February 2015, with a public consultation to follow on 19-20 March 2015.


As part of the OECD BEPS project, Actions 8, 9 and 10 pertain to a number of closely related topics including the development of:

  • Rules to prevent BEPS by transferring risks among, or allocating excessive capital to, group members, such as adopting transfer pricing rules or special measures so that inappropriate returns will not accrue to an entity solely because it has contractually assumed risks or has provided capital. The rules to be developed will also require alignment of returns with value creation.
  • Rules to prevent base erosion and profit shifting by engaging in transactions that would not, or would only very rarely, occur between third parties. This will involve adopting transfer pricing rules or special measures to clarify the circumstances in which transactions can be recharacterised.
  • Transfer pricing rules or special measures for transfers of hard-to-value intangibles.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform