Businesses See More Uniformity Under EU Transfer Pricing Proposal

An EU proposal to establish a uniform framework on transfer pricing will bring more certainty for businesses, along with significant changes in current laws in some countries.

The European Commission proposal would write into the laws of EU member countries OECD guidelines on the application of the arms-length principle, which says intragroup transactions should be priced similarly to transactions between unrelated companies.

If the commission proposal—which takes the form of a directive, or minimum standard all countries must follow—is adopted, it “could provide more certainty for businesses and could reduce situations where peculiarities in member states’ legislation may give rise ...