{"id":1028,"date":"2022-04-25T21:26:03","date_gmt":"2022-04-25T19:26:03","guid":{"rendered":"https:\/\/nowa.cenytransferowe.pl\/knowledge\/international-organizations\/"},"modified":"2022-04-25T21:34:08","modified_gmt":"2022-04-25T19:34:08","slug":"international-organizations","status":"publish","type":"knowledge","link":"https:\/\/cenytransferowe.org\/en\/knowledge\/international-organizations\/","title":{"rendered":"International Organizations"},"content":{"rendered":"    <div class=\"highlighted-text\" id=\"highlightedTextContent\">\n        <p><strong>International organizations are important participants in the system of international relations.\u00a0They are an institutionalized form of cooperation between states (international governmental organizations &#8211; IGOs) or between institutions, legal and natural persons from different countries (international non-governmental organizations &#8211; INGOs).<\/strong><\/p>\n    <\/div>\n\n\n\n<p><strong>International governmental organizations (IGOs)<\/strong><br>International governmental organizations are organized associations of at least three states established under international agreements.&nbsp;They are established to implement the objectives of the activity specified in the founding documents (usually in the statute).<br>Intergovernmental organizations are characterized by international legal subjectivity, which means that they may have and assume on their own behalf rights and obligations under international law.&nbsp;This is expressed primarily in the possibility of concluding international agreements, maintaining diplomatic relations or participating in international conferences.<\/p>\n\n\n\n<p><strong>Functions of intergovernmental organizations<\/strong><br>In practice, three types of functions of intergovernmental organizations are distinguished in the field of international relations, they are:<\/p>\n\n\n\n<p>Regulatory functions, consisting in establishing legal, moral and political norms that influence the behavior of participants in the system of international relations,<\/p>\n\n\n\n<p>Control functions, consisting in examining the compliance of the Member States&#8217; actions with the content of the established standards and models,<\/p>\n\n\n\n<p>Operational functions, consisting in the provision of services to Member States or other entities directly by an international organization (e.g. conducting research, preparing reports).<\/p>\n\n\n\n<p><strong>Distinguishing feature<\/strong><br>An attribute that characterizes intergovernmental organizations is the existence of permanent bodies.&nbsp;Usually these are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>a general assembly in which all members of the organization are represented,<\/li><li>a council with a smaller number of rotating members and endowed with executive powers,<\/li><li>a permanent office or secretariat that performs administrative and technical functions.<\/li><\/ul>\n\n\n\n<p><strong>Division of international governmental organizations (IGOs)<\/strong>&nbsp;International governmental organizations are divided according to the geographical criterion and the nature of the organization&#8217;s competences.<\/p>\n\n\n\n<p>Breakdown based on the geographic key:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>general organizations, all countries of the world can become members (e.g. the United Nations&nbsp;&nbsp;),<\/li><li>regional organizations associating countries according to their geographic location (eg African Tax Forum &#8220;ATAF&#8221;, Pacific Association of Tax Administrations &#8220;PATA&#8221;, Central America Center for Tax Administrations &#8220;CIAT&#8221;).<\/li><\/ul>\n\n\n\n<p>Division according to the nature of the organization&#8217;s competences:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>general (e.g.&nbsp;OECD&nbsp;&nbsp;),<\/li><li>specialized in a given field of social life (eg&nbsp;<a href=\"http:\/\/cenytransferowe.org\/ceny-transferowe-na-swiecie\/organizacje-miedzynarodowe\/wspolne-forum-ue-ds-ct\/\">Joint EU Transfer Pricing Forum<\/a>&nbsp;)&nbsp;&nbsp;.<\/li><\/ul>\n\n\n\n<p><strong>International non-governmental organizations (INGOs)<\/strong><br>International non-governmental organizations are of a different nature.&nbsp;The activity of such structures is not regulated by international law, but by the law of the state in which such an organization is registered.&nbsp;Such organizations do not have international legal subjectivity.<\/p>\n\n\n\n<p>Among international non-governmental organizations, one of the most numerous groups are those with humanitarian, pacifist and cultural goals.&nbsp;INGOs have a great power to influence their environment, both as members of social dialogue and as lobbying groups acting for the cause they support.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">OECD\u00a0<\/h2>\n\n\n\n<p>The Organization for Economic Cooperation and Development was established in 1960 by 20 countries &#8211; 18 participants in the so-called&nbsp;Marshall Plan and Canada and the USA.&nbsp;Poland became a member of the OECD in 1996. Currently, the OECD has 38 countries.&nbsp;The organization aims to support member states in achieving the highest possible level of economic growth and living standards for citizens.&nbsp;The OECD is a leading international organization dealing with transfer pricing &#8211; the influence of OECD on the behavior of countries relates to a total of about 100 countries that follow the guidelines of this organization in their local regulations.<\/p>\n\n\n\n<p>Within the OECD, a number of agreements and codes of conduct relating to business transactions and taxation have been established.&nbsp;In 1979, the OECD published the first transfer pricing document &#8211; &#8220;Transfer Valuation for Multinational Enterprises&#8221;, which can be considered the first international guidelines for related party settlements.<\/p>\n\n\n\n<p>One of the most important projects carried out by the OECD in the field of transfer pricing was the &#8220;plan to combat the erosion of tax bases&#8221;, or BEPS.<\/p>\n\n\n\n<p>Over time, the OECD guidelines have become a reference point for tax administrations not only of OECD member countries, but also of other countries.&nbsp;OECD work on transfer pricing is still ongoing &#8211; in addition to the OECD Guidelines recently updated in 2017, detailed reports are issued, e.g. Transfer Pricing Guidelines for the Effects of the Covid-19 Pandemic or Transfer Pricing Guidelines for Financial Transactions.<\/p>\n\n\n\n<p>OECD documents and BEPS reports are available on&nbsp;<a href=\"http:\/\/ww.oecd.org\/\" target=\"_blank\" rel=\"noopener\">the OECD website<\/a>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The United Nations<\/h2>\n\n\n\n<p>Established after World War II, the United Nations is primarily a political organization that aims to ensure international peace and security, develop cooperation between nations and promote the observance of human rights.&nbsp;However, transfer pricing issues were included in the broad agenda of the United Nations and its individual agendas.&nbsp;The result is the Transfer Pricing Manual for Developing Countries, which was first published in 2013 and has had two subsequent editions by 2021.&nbsp;Contrary to the OECD, which has developed guidelines for transfer pricing, the UN document is a practical development of the OECD principles dedicated to developing countries as well as an extension of Art.&nbsp;9 of the UN Model Convention on Double Taxation (dedicated to associated enterprises).<\/p>\n\n\n\n<p>UN documents are available on the organization&#8217;s website &#8211;&nbsp;<a href=\"http:\/\/www.un.org\/\" target=\"_blank\" rel=\"noopener\">http:\/\/www.un.org<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">BEPS<\/h2>\n\n\n\n<p>BEPS or &#8220;plan to combat the erosion of tax bases&#8221; is a project launched in 2012 by the leaders of the G20 &#8211; the world&#8217;s largest economies.&nbsp;The project was led by the OECD under three pillars:<\/p>\n\n\n\n<p>1) introducing coherence of national laws on cross-border activities<br>2) strengthening essential requirements in existing international standards<br>3) improving transparency, while promoting greater certainty and predictability.<\/p>\n\n\n\n<p>The BEPS initiative ran until 2015 and included 15 actions that should be taken by individual countries to prevent unfair tax avoidance and shifting profits to tax havens.&nbsp;Actions 8-10 and 13 BEPS are strictly devoted to transfer pricing.&nbsp;One of the results of the BEPS work is the Country-by-country reporting introduced by the administration of OECD and G20 member states.&nbsp;The CbC report is a document where international capital groups report on the size of their activities, revenues, profits, tax as well as places of business.&nbsp;Such a report has been submitted by large taxpayers in Poland since 2016.<\/p>\n\n\n\n<p>BEPS reports are available&nbsp;<a href=\"http:\/\/ww.oecd.org\/\" target=\"_blank\" rel=\"noopener\">on the OECD website<\/a>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Joint EU Transfer Pricing Forum<\/h2>\n\n\n\n<p>The organization operating at the EU bodies has created the &#8220;Code of Conduct on Transfer Pricing Documentation for Associated Enterprises&#8221;.&nbsp;This document concerns the creation of standardized and partially centralized transfer pricing documentation for companies associated in the European Union.&nbsp;This document was adopted by the Resolution of the Council of the EU and representatives of the Member States in June 2006.<\/p>\n\n\n\n<p>Other important documents of this organization include documents on intra-group low-value-added services, advance pricing agreements and avoidance of disputes in the European Union.<\/p>\n\n\n\n<p>The documents of the Joint EU Transfer Pricing Forum are available\u00a0<a href=\"https:\/\/ec.europa.eu\/taxation_customs\/joint-transfer-pricing-forum_en\" target=\"_blank\" rel=\"noopener\">on the organisation&#8217;s website\u00a0<\/a><\/p>\n","protected":false},"featured_media":0,"template":"","knowledge_category":[41],"class_list":["post-1028","knowledge","type-knowledge","status-publish","hentry","knowledge_category-transfer-pricing-around-the-world"],"acf":[],"_links":{"self":[{"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/knowledge\/1028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/knowledge"}],"about":[{"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/types\/knowledge"}],"version-history":[{"count":0,"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/knowledge\/1028\/revisions"}],"wp:attachment":[{"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/media?parent=1028"}],"wp:term":[{"taxonomy":"knowledge_category","embeddable":true,"href":"https:\/\/cenytransferowe.org\/en\/wp-json\/wp\/v2\/knowledge_category?post=1028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}