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  • Service: Tax, Global Transfer Pricing Services
  • Type: Regulatory update
  • Date: 2/14/2014

EU - Report on compensating adjustments 

February 14:  The European Commission this week announced that the EU Joint Transfer Pricing Forum (JTPF)—a group of professionals that assists and advises the EC on transfer pricing tax matters—adopted a report on compensating adjustments.

The Report on Compensating Adjustments [PDF 62 KB] was adopted by the JTPF in January 2014, and:


  • Notes that EU Member States have different practices with respect to compensating adjustments
  • Provides guidance with respect to the application of compensating adjustments and issues of double taxation

The report guidance is applicable to compensating adjustments that are made in the taxpayer’s accounts and explained in the taxpayer’s transfer pricing documentation.



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