Code of conduct on transfer pricing documentation

Code of conduct on transfer pricing documentation for associated enterprises in the European Union (EU TPD)

Without prejudice to the respective spheres of competence of the Member States and the Community, this Code of Conduct concerns the implementation of standardised and partially centralised transfer pricing documentation for associated enterprises in the European Union. It is addressed to Member States but is also intended to encourage multinational enterprises to apply the EU TPD approach.

  1. Member States will accept standardised and partially centralised transfer pricing documentation for associated enterprises in the European Union (EU TPD), as set out in the Annex, and consider it as a basic set of information for the assessment of a multinational enterprise group’s transfer prices.
  2. The use of the EU TPD will be optional for a multinational enterprise group.
  3. Member States will apply similar considerations to documentation requirements for the attribution of profits to a permanent establishment as apply to transfer pricing documentation.
  4. Member States will, wherever necessary, take duly into account and be guided by the general principles and requirements referred to in the Annex.
  5. Member States undertake not to require smaller and less complex enterprises (including small and medium-sized enterprises) to produce the amount or complexity of documentation that might be expected from larger and more complex enterprises.
  6. Member States should: a. not impose unreasonable compliance costs or administrative burden on enterprises in requesting documentation to be created or obtained; b. not request documentation that has no bearing on transactions under review; c. ensure that there is no public disclosure of confidential information contained in documentation.
  7. Member States should not impose a documentation-related penalty where taxpayers comply in good faith, in a reasonable manner and within a reasonable time with standardised and consistent documentation as described in the Annex or with a Member State’s domestic documentation requirements, and apply their documentation properly to determine their arm’s length transfer prices.
  8. In order to assure the even and effective application of this Code, Member States should report annually to the commission on any measures they have taken further to this Code and its practical functioning.

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