CFE Tax Advisers Europe has submitted an Opinion Statement in response to the OECD public consultation on the proposed revisions to Chapter VII of the OECD Transfer Pricing Guidelines concerning intra-group services.
CFE 2/2026 Opinion Statement on Revisions to Chapter VII of the OECD Transfer Pricing Guidelines
CFE Tax Advisers Europe has submitted an Opinion Statement in response to the OECD public consultation on the proposed revisions to Chapter VII of the OECD Transfer Pricing Guidelines concerning intra-group services. The consultation forms part of the OECD's work to modernise and clarify the existing guidance while maintaining consistency with the arm's length principle and the broader transfer pricing framework contained in Chapters I, II and III of the OECD Transfer Pricing Guidelines.
In its submission, CFE welcomes the OECD's objective of improving clarity and consistency in the transfer pricing treatment of intra-group services, whilst emphasising that the revised guidance should remain proportionate, practical and supportive of tax certainty.
Clarifying the Benefit Test & Shareholder Activities
CFE welcomes the OECD's clarification that the benefit test should be assessed based on the facts and circumstances existing when services are performed rather than by reference to subsequent outcomes. The Statement encourages the OECD to reinforce that tax administrations should avoid applying hindsight when evaluating whether an intra-group service has been rendered.
The submission also welcomes the expanded guidance on shareholder activities whilst recommending additional clarification and practical examples to improve consistency across jurisdictions. CFE emphasises that activities should be characterised according to their substance and the benefit provided to group entities rather than solely by reference to the organisational level at which they are performed.
Practical Guidance on Charging Mechanism & Allocation Keys
The Statement supports the OECD's recognition that both direct and indirect charging methods may be appropriate depending on the circumstances. CFE encourages the OECD to maintain a principles-based approach to allocation keys, recognising that reasonable approximations are often necessary in shared service environments and that flexibility should be preserved to reflect different business models and service arrangements.
CFE also welcomes the additional guidance concerning pass-through costs and recommends further practical examples to improve consistency and reduce disputes.
Stock-Based Compensation & Low Value-Adding Services
CFE supports the OECD's decision to seek stakeholder input on stock-based compensation, identifying timing, valuation and accounting differences as areas where additional guidance would improve consistency and reduce double taxation risks.
The Statement also welcomes the continued application of the simplified approach for low value-adding intra-group services, including the retention of the 5% mark-up, whilst emphasising that it should not be treated as a benchmark for services outside the simplified regime.
Proportionality, Administrability & Tax Certainty
A central message of CFE's submission is that proportionality and administrative practicality should underpin the revised guidance. While welcoming the proposed documentation provisions, CFE stresses that they should not evolve into a de facto mandatory checklist or create disproportionate compliance burdens, particularly for routine and recurring intra-group services.
The Statement also highlights the importance of recognising that transfer pricing analyses frequently involve the exercise of professional judgement and reasonable approximations. The revised guidance should therefore avoid creating an expectation that only one transfer pricing outcome is acceptable and should continue to support effective dispute prevention and tax certainty.
Continued CFE Engagement with the OECD
Throughout the submission, CFE encourages the OECD to ensure that the revised Chapter VII promotes legal certainty, proportionality and consistent application across jurisdictions. The Statement supports practical guidance that reflects commercial reality whilst reducing unnecessary compliance burdens and the risk of double taxation.
CFE remains committed to contributing the practical experience of the European tax advisory profession to the development of international tax standards and looks forward to continuing its engagement with the OECD as this work progresses.
Fonte: CFE Tax Advisers Europe. Pubblicazione originale del 2026-07-22.