OECD: Updated International Compliance Assurance Programme (ICAP) FAQs

Expanded list of “frequently asked questions” (FAQs)

Expanded list of “frequently asked questions” (FAQs)

The Organisation for Economic Cooperation and Development (OECD) on June 4, 2024, published expanded “frequently asked questions” (FAQs) on the International Compliance Assurance Programme (ICAP), a multilateral risk assessment program for transfer pricing and permanent establishment issues.

The updated FAQs provide additional detail regarding ICAP coverage, what taxpayers can participate in ICAP, and the participation of external advisors in the ICAP process. The FAQs follow the release earlier this year of ICAP statistics, which show that ICAP can be a powerful tool for preventing disputes. Read TaxNewsFlash

The list of questions marked as “new” are:

4. How many periods does an ICAP risk assessment cover, and is there a possibility for a roll forward of the outcomes?

8. My MNE group’s Ultimate Parent Entity (UPE) is resident in a jurisdiction that is not participating in ICAP. Does this mean that my MNE group cannot submit a request for an ICAP risk assessment?

9. My MNE group’s Ultimate Parent Entity (UPE) is resident in a jurisdiction that participates in ICAP. Is it possible to approach another tax administration participating in ICAP and request that it acts as a Surrogate LTA?

10. My MNE group has already participated in an ICAP risk assessment. Is my MNE group eligible to request an additional ICAP risk assessment? And if so, are there specific requirements for such requests (e.g., minimum time periods between ICAP risk assessments)?

11. My MNE group has consolidated group revenues below the threshold for country-by-country reporting (CbC reporting) in the jurisdiction where the Ultimate Parent Entity (UPE) of the MNE group is resident. Does this mean my MNE group is not able to apply for an ICAP risk assessment?

12. Can my MNE group use its external tax and/or legal advisors to assist it in ICAP?


For further information on ICAP, view the replay of a joint KPMG-USCIB webcast featuring OECD, IRS, and industry speakers discussing the ICAP program and their experiences.



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.