Transfer Pricing Documentation for Associated Enterprises in the European Union (Eu Tpd)

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COUNCIL OF THE EUROPEAN UNION

Brussels, 20 June 2006 (OR. en)

9738/06

FISC 74 OC 405

LEGISLATIVE ACTS AND OTHER INSTRUMENTS Subject: RESOLUTION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, on a Code of Conduct on transfer pricing documentation for associated enterprises in the European Union (EU TPD) COMMON GUIDELINES Consultation deadline for Bulgaria and Romania: 21.06.2006

9738/06

XY/la

EN

RESOLUTION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, of on a Code of Conduct on transfer pricing documentation for associated enterprises in the European Union (EU TPD)

THE COUNCIL OF THE EUROPEAN UNION AND THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, Having regard to the Commission's study entitled "Company Taxation in the Internal Market"1, Having regard to the proposal made by the Commission, in its Communication of 23 October 2001 entitled "Towards an internal market without obstacles – A strategy for providing companies with a consolidated corporate tax base for their EU-wide activities2", for the establishment of an EU Joint Transfer Pricing Forum, Having regard to the Council conclusions of 11 March 2002 welcoming this move and the establishment of the Joint Transfer Pricing Forum in June 2002,

1 2

SEC(2001) 1681, 23.10.2001. COM(2001) 582 final, 23.10.2001. XY/la 1

9738/06

EN

Considering that the internal market comprises an area without frontiers in which the free movement of goods, persons, services and capital is guaranteed, Considering that in an internal market having the characteristics of a domestic market, transactions between associated enterprises from different Member States should not be subject to conditions less favourable than those applicable to the same transactions carried out between associated enterprises from the same Member State, Considering that in the interest of the proper functioning of the internal market, it is of major importance to reduce the compliance costs as regards transfer pricing documentation for associated enterprises, Considering that the Code of Conduct contained in this Resolution provides Member States and taxpayers with a valuable instrument for the implementation of standardised and partially centralised transfer pricing documentation in the European Union, with the aim of simplifying transfer pricing requirements for cross-border activities, Considering that acceptance by Member States of standardised and partially centralised transfer pricing documentation to support transfer pricing on an arm's length basis could help businesses to benefit more from the internal market, Considering that transfer pricing documentation in the European Union needs to be viewed in the framework of the OECD Transfer Pricing Guidelines,

9738/06

XY/la

2

EN

Considering that standardised and partially centralised documentation should be implemented flexibly and should recognise the particular circumstances of the business concerned, Considering that a Member State may decide not to have transfer pricing documentation rules at all or to require less transfer pricing documentation than that referred to in the Code of Conduct contained in this Resolution, Acknowledging that a common approach in the European Union with respect to documentation requirements is beneficial both for taxpayers, in particular in terms of reducing compliance costs and exposure to documentation-related penalties, and for tax administrations owing to enhanced transparency and consistency, Welcoming the Commission Communication of 7 November 20051 on the work of the EU Joint Transfer Pricing Forum in the field of business taxation and on a Code of Conduct on transfer pricing documentation for associated enterprises in the European Union, Emphasising that the Code of Conduct is a political commitment...
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