Groups Urge EU to Closely Align Transfer Pricing Rules With OECD

Industry groups representing corporations and tax practitioners in Europe said that while they back the policy goals of the EU’s new transfer pricing proposal, it’s important the directive is closely aligned by the OECD’s guidelines.

The European Commission proposed a directive in September that would establish a common transfer pricing framework for member states. The EU directive, if passed, would require European countries to write into state legislation the OECD guidelines on the application of the arms-length standard.

Transfer pricing determines the way related companies value transactions between one another. The arms-length standard requires related companies to value their transactions ...