The United Nations (UN) Tax Committee formed a subcommittee on transfer pricing (TP) at its fifth annual session in 2009 to meet the needs of developing countries in the area of TP. The Subcommittee was mandated to prepare a practical manual on TP for developing countries. Subsequent to the work of the Subcommittee, the UN Practical Manual on Transfer Pricing for Developing Countries (UN TP Manual) was adopted by the Committee in 2012. Thereafter, the UN Committee of Experts in International Cooperation in Tax Matters formed a subcommittee to work on two different areas related to TP. The Subcommittee has now presented a proposed version of the updated UN TP Manual (2016 Draft) for the approval of the Committee, with a view to publish the revised UN TP Manual in 2017. In carrying out its mandate, the Subcommittee gave due consideration to the outcome of the Organisation for Economic Co-operation and Development (OECD)/ G20 Action Plan on Base Erosion and Profit Shifting (BEPS) relating to TP. The 2016 Draft also includes chapters on the practices and positions of emerging countries like India, Mexico, China, South Africa and Brazil.

A Tax Alert prepared by Ernst & Young India, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1947