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Subcommittee on Article 9 (Associated Enterprises): Transfer Pricing

  • Status: Active
  • Creation: Ninth session of the Committee (October 2013)
  • Coordinator: Mr. Stig Sollund (Norway)
  • Members (Core group)
  • Other Members
  • Mandate
  • A. Revision of the Commentary on Article 9 of the UN Model Convention
  • The Subcommittee (through its Core Group of Committee Members) shall provide draft revised commentary on Article 9 and especially with regard to paragraph 1 of that article shall, in particular, take into account the common arm’s length principle embodied therein and in the corresponding Article of the OECD Model Convention and the need to provide, as far as possible, a common international framework for preventing and resolving disputes in the area of transfer pricing. Also the Subcommittee in this regard shall give due consideration to the aims and objectives expressed in the OECD/G20 Action Plan on Base Erosion and Profit Shifting as concerns transfer pricing and in its work, keeping in mind particularly the special situation of less developed economies.

    The Subcommittee shall present its proposed draft Commentary for discussion and decision at the tenth annual session of the Committee in 2014.

  • B. Update and enhancement of the United Nations Practical Manual on Transfer Pricing for Developing Countries
  • The Subcommittee as a Whole is mandated to update the United Nations Practical Manual on Transfer Pricing for Developing Countries, based on the following principles:

    • That it reflects the operation of Article 9 of the United Nations Model Convention, and the Arm’s Length Principle embodied in it, and is consistent with relevant Commentaries of the U.N. Model;
    • That it reflects the realities for developing countries, at their relevant stages of capacity development;
    • That special attention should be paid to the experience of developing countries; and
    • That it draws upon the work being done in other fora.

    In carrying out its mandate, the Subcommittee shall in particular consider comments and proposals for amendments to the Manual and provide draft additional chapters on intra-group services and management fees and intangibles, as well as a draft annex on available technical assistance and capacity building resources such as may assist developing countries. The Subcommittee shall give due consideration to the outcome of the OECD/G20 Action Plan on Base Erosion and Profit Shifting as concerns transfer pricing and the Manual shall reflect the special situation of less developed economies.

    The Subcommittee shall report on its progress at the annual sessions of the Committee and provide its final updated draft Manual for discussion and adoption at the twelfth annual session of the Committee in 2016.

For more information, please contact: Michael Lennard, Secretary,
Committee of Experts on International Cooperation in Tax Matters
Email: taxffdoffice@un.org

 
 
 

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