Transfer Pricing Rules In The European Union

The European Union, comprising 27 Member States, is one of the most prominent models of economic integration in the world. It is based on a single market that allows the free movement of goods, services and capital between Member States. With this level of integration, the need to coordinate and harmonies certain tax rules has become increasingly pressing, particularly in the area of transfer pricing, given its importance in regulating transactions between related companies within multinational groups. The greater the differences between national systems, the higher the likelihood that they may be exploited to shift or redistribute profits in a way that does not reflect the real economic activity within each country.