The European Commission has welcomed the adoption by member states of a Code of Conduct on transfer pricing documentation.
The Code of Conduct will standardise the documentation that companies must provide to tax authorities on their pricing of cross-border intra-group transactions.
According to the EC, the Code will reduce significantly the tax complications that companies face when trading with associated enterprises in other Member States and, at the same time, facilitate the work of tax administrations by increased transparency regarding the group's transfer prices. It should also reduce the risk for businesses of double taxation and exposure to documentation related penalties.The Code is a political commitment but will not affect the Member States' rights and obligations or the respective spheres of competence of the Member States and the European Union.
"I am very pleased that Member States have adopted this Code of Conduct that will ensure greater certainty and reduced compliance costs and risks of documentation-related penalties for multinationals" stated Taxation Commissioner Lazlo Kovacs.
"I now urge Member States to implement the Code as soon as possible in their national legislation or administrative practices," he added.
http://www.tax-news.com/news/EU_Adopts_Transfer_Pricing_Code_Of_Conduct____24062.html
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