EU Parliament Backs Transfer Pricing, Head Tax Office Plans

The European Union should apply from next year both an updated transfer pricing framework and a new tax head office rule for smaller companies, European Parliament lawmakers said Wednesday.

Lawmakers sitting in Strasbourg, France, voted 438-99, with 63 abstentions, for an advisory opinion on the transfer pricing plan, and 443-110, with 51 abstentions, for a similar opinion on the head-office system for small and medium-sized companies.

The transfer pricing update would see all EU countries formalize the implementation of the Organization for Economic Cooperation and Development’s transfer pricing guidelines into their respective laws.

The transfer pricing guidelines include ...