EU Parliament Approves Proposed Directives on Transfer Pricing and Head Office Taxation with Amendments

On 10 April 2024, the European Parliament approved legislative resolutions on the proposal for a Council directive on transfer pricing and the proposal for a Council directive establishing a Head Office Tax system for micro, small and medium sized enterprises, with amendments. Both proposals were originally announced by the European Commission on 12 September 2023.

The proposal on transfer pricing is meant to harmonize transfer pricing rules within the EU to ensure a common approach to tr…