Strategizing Multinational Tax Risks

The EU Joint Transfer Pricing Forum has published a valuable update highlighting local country perspectives on a common criteria.  The link is attached for reference:

http://ec.europa.eu/taxation_customs/taxation/company_tax/transfer_pricing/forum/index_en.htm#tpprofiles

The common criteria provided by each country is as follows:

1. Reference to the Arm’s-Length Principle
2. Reference to the OECD TP Guidelines
3. Definition of related parties
4. Transfer pricing methods
5. Transfer pricing documentation requirements
6. Specific audit procedures and/or specific transfer pricing penalties
7. Information for small and medium enterprises on transfer pricing
8. Information on dispute resolution
9. Relevant regulations on Advanced Pricing Arrangements
10. Links to relevant government websites
11. Other relevant information

Countries included in the update consist of:

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France (coming soon)
• Germany (coming soon)
• Greece
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• Netherlands
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden
• UK

The information is highly relevant and should be used as a primary resource re: the respective country’s views on transfer pricing, OECD alignment and dispute resolution methodologies.

For Best Practices, the information should be compared with the transfer pricing documentation prepared re: the arm’s-length principle and consistency of audit principles by tax authorities.