The OECD's work in the Base Erosion and Profit
Shifting project (BEPS) resulted in an update of the OECD Transfer
Pricing Guidelines 2017. What the resulting necessary fundamental
revision of the Austrian Transfer Pricing Guidelines 2010
brings.
On 4 December 2020, the Austrian Ministry of Finance published
the draft of the revised Austrian Transfer Pricing Guidelines
(Austrian Guidelines) 2020. The Austrian Guidelines 2020 are an
essential interpretative aid for the application of the
arm's-length principle in business relationships between
associated companies and permanent establishment situations.
Arm's-length principle
The "arm's-length principle" requires that
business relationships between related parties be agreed upon as
would be the case in comparable transactions between independent
third parties. Otherwise, the tax authorities are entitled to
adjust the agreed prices to the arm's-length value and make
corresponding profit adjustments.
