The OECD's Role in Shaping Transfer Pricing Regulations and Curbing Profit Shifting

Abstract

The Organization for Economic Co-operation and Development (OECD) has played a crucial role in shaping global transfer pricing regulations and curbing the harmful effects of profit shifting by multinational corporations (MNCs). This research paper provides a comprehensive analysis of the OECD’s initiatives, particularly the Base Erosion and Profit Shifting (BEPS) project, which has redefined the global regulatory landscape in international taxation. The paper discusses the OECD's guidelines on transfer pricing, its impact on national tax laws, the challenges in implementation, and the future outlook for international tax cooperation. Through its efforts, the OECD aims to enhance transparency, consistency, and fairness in the global tax system, minimizing the loss of tax revenues for governments worldwide.