Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘PSM’

EU: Profit Split method

The EU Joint Transfer Pricing Forum recently published a paper illustrating when to use the profit split method (PSM) and how to accomplish the split of profits per the OECD Guidelines.  The report is linked as a reference.

The report is a complement to, and supports, the OECD Revised Guidelines on the application of the Transactional Profit Split Method issued in June 2018.

As this method is not simple, and is also a focus on transfer pricing issues in the US, this paper is valuable into the application and concepts of PSM.

 

https://ec.europa.eu/taxation_customs/sites/taxation/files/report_on_the_application_of_the_profit_split_method_within_the_eu_en.pdf

%d bloggers like this: