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BDO Transfer Pricing News - Issue 41

02 January 2023

Original content provided by BDO

OECD published MAP statistics

  • The OECD on 22 November 2022 released mutual agreement procedure (MAP) statistics for the calendar year ended 31 December 2021. The 2021 MAP statistics show that significantly more MAP cases were closed in 2021 than in 2020, with 22% more transfer pricing cases closed. The OECD concludes that competent authorities were able to close more cases in 2021 thanks to the greater use of virtual meetings, the prioritisation of simpler cases and greater collaboration to solve common issues collectively that could be applied across multiple MAP cases.


  • Fewer new MAP cases were opened in 2021, compared to 2020, a decrease attributed to a significant reduction in the number of new transfer pricing cases opened (down almost 10.5%), On a less positive note, the MAP statistics demonstrated that cases still take a long time. On average, MAP transfer pricing cases closed in 2021 took 32 months to conclude, compared to 35 months in 2020.


  • The OECD also released its 2021 MAP Awards winners, with Spain taking the honours for the shortest time in closing transfer pricing cases. Canada won for the smallest proportion of pre-2016 cases in end inventory, and Ireland and New Zealand for the most effective caseload management. The award for the pairs of jurisdictions that dealt most effectively with their joint transfer pricing caseload went to France-United States. Finally, the award for the most improved jurisdiction went to Germany, which closed an additional 144 cases with positive outcomes compared to 2020.


OECD releases public consultation document on Amount B of Pillar One

Progress on Pillar One also continues, although perhaps at a slower pace. The OECD on Dec. 8 issued a public consultation document on Amount B of Pillar One, an effort to simplify and streamline the process for pricing baseline marketing and distribution activities in accordance with the arm’s length principle.

In contrast to Amount A of Pillar One, Amount B is not limited in application to multinational entities (MNEs) above certain profitability or revenue thresholds. Rather, Amount B, with exceptions for distribution of commodities and non-tangible goods, would apply to all MNEs that undertake “routine” distribution activities.

The consultation document proposes that Amount B will cover the distribution of tangible goods, but it may be expanded to include services and software, or other digital goods.


 Comments on the consultation document are due on 25 January 2023. 


The OECD’s project on the taxation of the digital economy continues to generate headlines, most recently with the announcement on 12 December that the EU member states had reached agreement to recommend that the Council of the European Union adopt the proposed Pillar Two directive that would ensure the largest multinational enterprise groups in the EU pay a minimum rate of tax. 


In this edition you can also read about:

  • China: Shenzhen customs, tax authorities to collaborate on transfer pricing of related-party imported goods
  • Germany: Final draft bill on public country-by-country reporting published
  • International: Transfer pricing bytes
  • Luxembourg: CJEU rules no state aid in Fiat case
  • Malta: Transfer pricing rules published
  • OECD: OECD releases public consultation document on Amount B of Pillar One
  • South Africa: Transfer pricing net broadened with introduction of Associated Enterprises Concept
  • United Kingdom: Transfer pricing documentation requirements changes closer to becoming reality

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