A major challenge for a United Nations initiative aimed at supporting developing countries in improving their enforcement of transfer pricing in the technology sector is overcoming data access and personnel shortages.
To address this issue, a UN committee of tax experts is preparing to draft new guidelines for transfer pricing, recognizing the technology sector’s growing impact in the global south and the need to tackle issues like profit shifting by companies.
As the tech industry continues to rapidly evolve and relies heavily on intangible assets, tax administrations are seeking clearer guidance. Experts in taxation have emphasized that these guidelines could significantly help enhance revenue collection for these countries.
