In comparison to the last version of the Guidelines from 2017, the new version from January 2022 includes revised recommendations regarding the following areas:

• The recommendations regarding the application of the profit split method that was approved in 2018 were incorporated into Part III, Chapter II of the Guidelines. Annex III was added to Chapter II with examples for the application of the profit split method.
• Chapter VI, or Annex II to Chapter VI, was expanded by recommendations for Tax Administrators regarding the approach to hard-to-value intangibles, approved in 2018 as well.
• A new Chapter X was added. It includes transfer pricing guidance for financial transactions from 2020.
• Finally, changes were made to the rest of the Guidelines to ensure consistency of the entire text with the newly added or modified sections.

The OECD further notes that in a global economy where multinational enterprises play a prominent role, it is necessary to ensure that the profits of multinational enterprises are not artificially shifted out of their jurisdiction and that the reported tax base reflects the true economic reality. It is essential to limit the risks of double taxation for taxpayers. The Guidelines provide guidance on the application of the “arm’s length principle”, which is the international consensus on the valuation of transactions between associated enterprises.

The General Financial Directorate also notified of the updated Guidelines in their Information dated 1 February 2022, stating that it is preparing the translation of the revised Guidelines into Czech.