Within the OECD/G20 BEPS (Base Erosion and Profit Shifiting) Project, the report on actions 8-10 introduced significant changes to OECD guidelines on transfer pricing. Such changes were implemented in the new version published in July 2017.
In line with the abovementioned progress in the international landscape, a possibility has been provided, to introduce a ministerial decree containing the guidelines for the application of the regulation, basing on the improved international practice.
To this end, a working group made up of the Finance Department of the Ministry for Economy and Finance, the Revenue Office and the Guardia di Finanza di Finanza arranged an action plan aimed at implementing the regulation, providing clarifications to taxpayers and ensuring an adequate training of those bodies that will have to apply those regulation, through a public consultation with concerned operators.
Documents that will be evaluated, analysed and commented by all potential concerned subjects include:
Bernoni Grant Thornton International Tax team, coordinated by Paolo Besio, recently sent a document containing comments on the abovementioned provisions, under consultation by the Ministry for Economy and Finance.
On 8 may 2018 a round table was held by the Ministry of Economy and Finance in Rome to discuss upon the comments and contributions received during the public consultation.
The meeting focused on the proposed amendments to the draft Ministerial Decree and to the draft Regulation made available in February on the Ministry’s website.
Representatives of the Ministry of Economy and Finance, of the Revenue Office and of the Guardia di Finanza (Tax Police) analysed with all subjects concerned the proposal emerged from the consultation, including the addition of specific criteria for the determination of transfer prices of low value-added intercompany services, the update of provisions on transfer pricing documentary requirements and the proceedings to avoid double taxation further to amendments made by other countries where a treaty for the avoidance of double taxation is in force.