Introducing the Orbitax International Tax Platform, a revolutionary suite of integrated tax solutions including research, compliance, calculations, entity management and charting. Find out more.
News Share

The Tax Hub

Daily Tax Newsletter


Responsive image

OECD released discussion draft on transactional profit methods

On 25 January 2008, the OECD issued a public discussion draft on the transactional profit methods. The discussion draft is a result of an initiative of OECD's Working Party 6, and it is based on the experience acquired by countries applying transactional profit methods since the adoption of the Transfer Pricing Guidelines in 1995 and on comments received from the business community in response to the 2006 invitation.

InFebruary, the OECD released an invitation to comment on issues in relation to profit methods and attracted many detailed responses from the public.

The issues addressed in this discussion draft are as follows:

-   Status of transactional profit methods as last resort methods.
-   Use of more than one method (use of a transactional profit method in conjunction with a traditional transaction method, or sanity check).
-   Access to the information needed to apply or review the application of a transactional profit method.
-   Application of transactional profit methods and unique contributions.
-   Application of the transactional net margin method: standard of comparability.
-   Application of the transactional net margin method: selection and determination of the net profit margin indicator.
-   Application of a transactional profit split method: determining the combined profit to be split.
-   Transactional profit split method: reliability of a residual analysis and a contribution analysis.
-   Application of a transactional profit split method: how to split the combined profit.
-   Other methods

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Translate Documents

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More