Brussels, 28/06/2006 (Agence Europe) - The Council has adopted a Code of Conduct, based on the Commission's November 2005 proposal (see EUROPE 9068), on transfer pricing documentation for companies trading with associated enterprises in other Member States. It believes that the Code of Conduct, which is optional for multinational groups of companies, will be an extremely useful instrument for Member States and taxpayers in the implementation of standardised and partly centralised transfer pricing documentation within the EU. Pricing transfer means the prices set between associated enterprises established in different tax areas for their intra-group transactions, such as the transfer of goods and services.
Member States have agreed to the setting up of standardised and partly centralised pricing transfer documentation for associated enterprises within the EU. This documentation comprises two main parts: the “masterfile”, a set of documents containing harmonised information valid for all members of the group established in the EU, and several sets of standardised documents each containing information specific to the country concerned. “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,” said Lásló Kováks in a press release. The Taxation Commissioner urged “Member States to implement the Code as soon as possible in their national legislation or administrative practices”. Further information on the Code is available on the EU Council website: http: //register.consilium.europa.eu/pdf/en/06/st09/st09738.en06.pdf