OECD Guidelines and Transfer Pricing in North America's Digital Economy

Abstract

The rapid growth of the digital economy has necessitated a reevaluation of international tax principles, particularly transfer pricing rules as outlined by the Organization for Economic Co-operation and Development (OECD). This research paper explores the implications of the OECD Guidelines on transfer pricing in the context of North America's digital economy. It examines the challenges posed by the digitalization of business models, the responses by tax authorities, and the evolving landscape of transfer pricing compliance. The findings highlight the need for adaptive frameworks that align tax policies with digital business operations while ensuring fairness and preventing tax base erosion. The paper concludes with recommendations for policymakers to enhance cooperation and coherence in tax practices, facilitating a sustainable digital economy.