The key issues for transfer pricing is performing the comparability analysis with aim to find external comparable companies i.e. companies performing same or similar business activities in the same or similar economic and market conditions. However, during the COVID-19 pandemic, which have been affecting business in a totally new way, there are obstacles and uncertainty how to perform comparability analysis and related comparability adjustments reflecting current economic and market conditions. As the COVID-19 pandemic and crisis has had a significant impact on these conditions and unprecedently changed the economic environment. Moreover, due to the time-lag in commercial databases presenting financial data of potential comparable companies operating in the Europe, taxpayers face a new problem: how to defend their arm´s length position for fiscal years 2020 and 2021 while reflecting current economic and market conditions. The aim of the paper is to evaluate approaches how to reflect the COVID-19 pandemic in the comparability analysis and related comparability adjustments. Based on the results, we are rather sceptical about the practical application of recommended approaches: the taxpayers face a great challenge in how to make adequate comparability adjustments and at the same time be able to properly defend them to the tax administrator.