Press Release: Company taxation: The European Commission proposes guidelines to avoid transfer pricing disputes

The EU Commission has adopted a Communication based on the work carried out by the EU Joint Transfer Pricing Forum (see IP/02/1105). The Commission and the Forum consider that Advance Pricing Agreements (APAs) are an appropriate tool to increase legal certainty and to lessen transfer pricing burdens on taxpayers. Therefore the Commission has drafted guidelines for APAs which will make it easier for companies to avoid some of the problems caused by different transfer pricing rules in Member States. Transfer pricing rules aim at ensuring that in cross-border situations related companies allocate the correct tax base to the countries where they trade.