OECD Guidelines. Between Soft-Law and Hard-Law in Transfer Pricing Matters

Abstrakt

Transfer pricing is a crucial issue in international tax law, yet its legal regulation at the level of international law is rather limited. Provisions on transfer pricing are contained in both the OECD Model Tax Convention on Income and on Capital and its US and UN equivalents (Article 9 in all three models). Their wording, however, is rather general. This leaves plenty of matters to be regulated at the domestic level, which cannot properly serve the aim of international law in this regard – namely, elimination of economic double taxation. However, Article 9 of the OECD Model is developed in far more detailed guidelines developed by the OECD, which are used in numerous countries. The OECD guidelines are not the only piece of soft-law in transfer pricing matters available worldwide. The author analyses their legal status and on that basis makes certain forecasts as to their further application in the future.