On 12 September 2023, the European Commission (EC) released legislative proposals for a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT) and a Council Directive that integrates key transfer pricing (TP) principles into EU law (the TP Directive). This article will analyse the proposed TP Directive, specifically in relation to the OECD Guidelines for Multinational Enterprises and Tax Administrations and EU law.

The article covers the following:

  • Section 1 gives a short introduction to the topic
  • Section 2 discusses the background of the TP Directive, including its reasons and objectives
  • Section 3 the authors analyse the proposed articles of the TP Directive
  • Section 4 includes the position of the TP Directive in respect of other tax developments
  • Section 5 covers the process of the TP Directive’s adoption
  • In section 6 the conclusions are provided.

Throughout this article, the authors have added their observations, where appropriate.

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