Exploring the Impact of OECD Guidelines on Transfer Pricing and Profit Shifting

Abstract

This research paper examines the impact of the OECD Guidelines on Transfer Pricing and Profit Shifting. As globalization continues to reshape the business landscape, the significance of transfer pricing has surged, leading to a critical analysis of the OECD's role in mitigating tax avoidance and ensuring fair taxation among multinational enterprises (MNEs). This paper reviews the historical context, the evolution of OECD guidelines, and their influence on national tax policies. It further explores the challenges and opportunities arising from these guidelines and provides recommendations for policymakers and MNEs. Ultimately, this study aims to shed light on the effectiveness of OECD guidelines in addressing profit shifting and promoting tax fairness in an increasingly interconnected global economy.