This master thesis is a study of the special transfer pricing (TP) challenges related to COVID-19, when Danish parent companies are to use the arm’s length principle, transfer intangibles during a business restructuration in 2020-21. It also examines the impact of the multinational enterprises (MNEs), tax administrations and external consultants on the special TP related issues in 2020-21. Additionally, this study will evaluate whether the OECD’s Guidance on the Transfer Pricing impli- cations of the COVID-19 pandemic of the 18th of December 2020 offer sufficient guidance for Danish parent companies with TP challenges during COVID-19.

The increased global development means that an increasing number of Danish parent companies see opportunities in establishing susbsidiaries abroad. The growth of these MNEs in conjunction with technological development creates a complex taxation issue for both the tax authorities and for the MNEs themselves. COVID-19 came unexpectedly, and the pandemic has led to losses in several industries. The unprecedented change in the economic environment creates unique challenges for performing comparability analysis. The pandemic has a special impact on the pricing of some trans- actions, between independent enterprises, which may reduce the extent to which it is possible to rely on historical data.

The main conclusion is that the TPG 2017 chapter I provide adequate guidance in relation to the five comparability factors. The COVID-19 guidance provides sufficient instructions on the collection and processing of market data when performing a comparability analysis during the pandemic. The COVID-19 guidelines accepts that low-risk companies can carry deficits during COVID-19 and pro- vides the MNEs with sufficient guidance on the processing and allocation of government assistance programs. Accordingly, the COVID-19 guidance should not be extended. TPG 2017 chapter VI and IX provides the MNEs with sufficient guidance upon the ownership of intangible, profit distribution in relation to the DEMPE-functions and -risks and with performing a business restructuring during COVID-19. But the current TPG and the COVID-19 guidance do not provide MNEs with adequate guidelines during the pandemic regarding the valuation of intangible assets and using the DCF pricing model. The last chapter in the master thesis discusses the special TP challenges from the pandemic in a self-constructed fictional case where intangible assets are transferred in a business restructuring on the 1st of March 2020.