The Joint Transfer Pricing Forum (JTPF) was an informal body set up to assist and advise the European Commission on transfer pricing tax matters. It has since been discontinued.
Background
In the EU, transfer pricing is not harmonised through legislative acts. The JTPF was thus set up in 2002 to support the European Commission by proposing pragmatic, non-legislative solutions to practical problems posed by transfer pricing practices in the EU.
The overarching aim of its work was to address diverging approaches at the national level that result in excessive or overly complex rules, thereby creating significant costs and administrative burdens for both tax administrations and taxpayers.
The JTPF was involved in a series of EU initiatives to create a common framework for coordinating domestic transfer pricing rules. This includes guidance and recommendations on all steps of the TP process, from determination and documentation to auditing and dispute resolution.
Today, all EU Member States have adopted the OECD transfer pricing standard: the Arm’s Length Principle or equivalent measures.
Mandate
The JTPF works within the framework of the OECD Transfer Pricing Guidelines and operates by consensus. Its work is divided into 2 main areas:
- the Arbitration Convention (AC) - a specific dispute resolution mechanism for transfer pricing cases
- other transfer pricing issues identified by JTPF and included in its work programme
Members
The JTPF consisted of one representative from each EU Member State's tax administration and 18 non-governmental organisation members. It was chaired by an independent chairperson. Representatives from EU candidate countries (Albania, Republic of North Macedonia, Iceland, Montenegro, Serbia and Turkey) and OECD members may be invited as observers.