Reducing double taxation for cross-border companies remains high on Commission's agenda
Today, the Commission decided to extend the mandate of the EU Joint Transfer Pricing Forum (JTPF) until March 2015, so that it can continue its important work in resolving double taxation problems for businesses across Europe. The JTPF, which is made up of national tax administrations and business representatives, helps to solve problems linked to the taxation of cross-border transactions between same-group and associated companies within the EU.
Currently, there is a complex system for deciding how to tax such transactions, and differences between Member States' transfer pricing rules can result in double taxation and heavy administrative burdens for businesses. The planned proposal for a Common Consolidated Corporate Tax Base (CCCTB), which Commissioner Šemeta intends to bring forward this year, will help provide a permanent solution to many of the problems that businesses face in this respect.
However, in the meantime, the work of the JTPF is crucial in providing businesses with greater certainty and consistency when it comes to the taxation of their cross-border operations. The Commission also adopted a Communication today setting out guidelines on some technical issues related to transfer pricing taxation. For more information, see: http://ec.europa.eu/taxation_customs/index_en.htm