NERA's Comments on the OECD's Revised Discussion Draft on Transfer Pricing Aspects of Intangibles

01 October 2013
By Pim Fris, Dr. Harlow Higinbotham, and Dr. Emmanuel Llinares

In 2012, the Organisation for Economic Co-operation and Development (OECD) published a Discussion Draft containing proposed revisions to the OECD Transfer Pricing Guidelines on Transfer Pricing Aspects of Intangibles. After receiving comments and holding a public consultation, on 30 July 2013 the OECD Committee on Fiscal Affairs then released a Revised Discussion Draft on Transfer Pricing Aspects of Intangibles, and invited interested parties to submit written comments. In response, experts from NERA's Global Transfer Pricing Practice -- Director and Head of Global Transfer Pricing Dr. Emmanuel Llinares, Senior Vice President Dr. Harlow Higinbotham, and NERA Affiliated Consultant Pim Fris -- submitted comments on 1 October 2013. In their comments, the authors note that, overall, the Revised Discussion Draft provides valuable guidance regarding the transfer pricing issues associated with intangibles, and the revised draft better coheres with the other chapters of the OECD Transfer Pricing Guidelines. The authors analyze the guidance offered by the Revised Discussion Draft, consider the effects of the draft from the perspective of economic analyses, and offer suggestions for improvement.