EU member states have agreed to further develop a non-binding transfer pricing platform as an alternative to the European Commission’s proposed legislation on harmonizing transfer pricing rules. At a recent working party meeting, representatives decided to continue refining the platform and its structure into 2025, with Poland leading discussions during its EU presidency starting in January 2025. The European Commission’s proposal aimed to standardize the application of OECD transfer pricing guidelines across the EU. However, member states opposed the idea, citing concerns over losing regulatory flexibility. Instead, they chose a “soft law” approach, allowing coordination and discussions on cases without binding regulations. Disagreements persist over the platform’s authority and whether it should have any legally binding power, as countries seek a balance between cooperation and sovereignty.
To access the European Commission’s Directive on transfer pricing, click here.