{"id":2400,"date":"2020-09-03T19:09:21","date_gmt":"2020-09-03T17:09:21","guid":{"rendered":"http:\/\/www.tomato.ch\/blog\/?p=2400"},"modified":"2020-08-29T19:09:52","modified_gmt":"2020-08-29T17:09:52","slug":"oecds-guidelines-for-transfer-pricing-and-cash-pools","status":"publish","type":"post","link":"https:\/\/www.tomato.ch\/blog\/2020\/09\/oecds-guidelines-for-transfer-pricing-and-cash-pools\/","title":{"rendered":"OECD\u2019s Guidelines for Transfer Pricing and Cash Pools"},"content":{"rendered":"\n<p>PwC Switzerland\u2019s David McDonald and Michalis Louca discussed on July 7 how inter-company financing transactions should be priced in the light of OECD\u2019s new guidelines for financial transactions.<\/p>\n\n\n\n<p><strong><em>Key changes and principles<\/em><\/strong><\/p>\n\n\n\n<ul><li>A new description of a transaction: an assessment of options realistically available to borrower and lender including an assessment of market\/economic conditions.<\/li><li>The volume of loan must not exceed the amount that the borrower could\/would have borrowed.<\/li><li>Only a small return can be justified to a lender\/guarantor\/treasury center.<\/li><\/ul>\n\n\n\n<p><strong><em>Challenges and Actions<\/em><\/strong><br>Groups will need a process for new transactions (assessing the key terms, the quantum of the loan, the lender, and the borrower perspective) and to perform a one-off review of existing transactions for compliance with the new requirements.<\/p>\n\n\n\n<p><strong><em>Treasury Functions \u2013 intra-group loans and cash pooling (CP)<\/em><\/strong><\/p>\n\n\n\n<ul><li>Pricing loans between group companies will require credit rating analyses.<\/li><li>Interest rates should be benchmarked; bank quotes should not be used as benchmarks.<\/li><li>Most cash pools will need to amend the rationale for economic returns.<\/li><li>The rates that participants get from the pool versus local market rates should be tested.<\/li><li>Cash pool positions should be only short term.<\/li><\/ul>\n\n\n\n<p><strong><em>Financial guarantees:<\/em><\/strong><\/p>\n\n\n\n<ul><li>No guarantee fees payable unless there is an explicit guarantee.<\/li><li>Perform benefit assessment.<\/li><li>MNEs need to assess when a guarantee fee is\/is not charged accordingly.<\/li><li>Groups may choose to change the agreements covering the guarantee, rather than changing the pricing.<\/li><\/ul>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/image.email.pwc.com\/lib\/fe37117075640474711674\/m\/1\/694d5bb1-b3a3-478d-aab0-3bda867ee9e9.pdf\" target=\"_blank\">PwC Slides of this Webinar July 7th 2020<\/a>\u00a0<br>Ziehen Sie Deutsch vor? <\/p>\n\n\n\n<p>Das HSLU in Zug offeriert am <strong>21. und 28.10.2020, 4.11.2020 <\/strong>den Kurse <strong>Fachkurs Swiss Treasury Practice<\/strong>: Aktuelle Herausforderungen im Corporate Treasury durch. <\/p>\n\n\n\n<p>&#8220;Der Fachkurs thematisiert aktuelle steuerliche und rechtliche Problemstellungen u.a. in den Bereichen Transfer Pricing, Cash Pooling und Accounting&#8221;<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/www.hslu.ch\/de-ch\/wirtschaft\/weiterbildung\/weiterbildungskurse\/ifz\/swiss-treasury-practice\/?utm_source=persoenliches%20mailing&amp;utm_medium=email&amp;utm_campaign=w_ifz&amp;utm_content=kw9\" target=\"_blank\">Veranstaltung und Anmeldung<\/a><\/p>\n<div id=\"tweetbutton2400\" class=\"tw_button\" style=\"\"><a href=\"http:\/\/twitter.com\/share?url=https%3A%2F%2Fwww.tomato.ch%2Fblog%2F2020%2F09%2Foecds-guidelines-for-transfer-pricing-and-cash-pools%2F&amp;text=OECD%E2%80%99s%20Guidelines%20for%20Transfer%20Pricing%20and%20Cash%20Pools&amp;related=&amp;lang=en&amp;count=horizontal&amp;counturl=https%3A%2F%2Fwww.tomato.ch%2Fblog%2F2020%2F09%2Foecds-guidelines-for-transfer-pricing-and-cash-pools%2F\" class=\"twitter-share-button\"  style=\"width:55px;height:22px;background:transparent url('https:\/\/www.tomato.ch\/blog\/wp-content\/plugins\/wp-tweet-button\/tweetn.png') no-repeat  0 0;text-align:left;text-indent:-9999px;display:block;\">Tweet<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>PwC Switzerland\u2019s David McDonald and Michalis Louca discussed on July 7 how inter-company financing transactions should be priced in the light of OECD\u2019s new guidelines for financial transactions. Key changes and principles A new description of a transaction: an assessment of options realistically available to borrower and lender including an assessment of market\/economic conditions. The [&hellip;]<\/p>\n<div id=\"tweetbutton2400\" class=\"tw_button\" style=\"\"><a href=\"http:\/\/twitter.com\/share?url=https%3A%2F%2Fwww.tomato.ch%2Fblog%2F2020%2F09%2Foecds-guidelines-for-transfer-pricing-and-cash-pools%2F&amp;text=OECD%E2%80%99s%20Guidelines%20for%20Transfer%20Pricing%20and%20Cash%20Pools&amp;related=&amp;lang=en&amp;count=horizontal&amp;counturl=https%3A%2F%2Fwww.tomato.ch%2Fblog%2F2020%2F09%2Foecds-guidelines-for-transfer-pricing-and-cash-pools%2F\" class=\"twitter-share-button\"  style=\"width:55px;height:22px;background:transparent url('https:\/\/www.tomato.ch\/blog\/wp-content\/plugins\/wp-tweet-button\/tweetn.png') no-repeat  0 0;text-align:left;text-indent:-9999px;display:block;\">Tweet<\/a><\/div>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[116,386,384,385],"_links":{"self":[{"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/posts\/2400"}],"collection":[{"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/comments?post=2400"}],"version-history":[{"count":4,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/posts\/2400\/revisions"}],"predecessor-version":[{"id":2404,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/posts\/2400\/revisions\/2404"}],"wp:attachment":[{"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/media?parent=2400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/categories?post=2400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tomato.ch\/blog\/wp-json\/wp\/v2\/tags?post=2400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}