EU - New transfer pricing guidelines adopted by European Commission 

June 4: The European Commission (EC) today adopted a “communication” that includes guidelines on three aspects of the treatment of transfer pricing transactions:
  • Risk management in dealing with transfer pricing
  • Application of secondary adjustments
  • The use of compensating adjustments

According to today’s EC release, these guidelines are relevant in the context of the ongoing OECD work on the Base Erosion and Profit Shifting project (BEPS).

The transfer pricing guidelines are drawn from the work of the EU Joint Transfer Pricing Forum (JTPF), as established by the EC to improve the functioning of the Single Market and to allow for better corporate tax coordination.

Today's communication also provides an update on the implementation of the JTPF work programme, which runs until March 2015.

Read more about the communication and JTPF in a rleated release from today of “frequently asked questions” (FAQs).

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