Advance Pricing Agreement Dauer

The relevant authorities can then communicate during the negotiation phase. Communication between the relevant authorities can be made either in writing or in person. If the relevant authorities reach a mutual agreement on a given APA, the agreement is formalized by a written document. 6. The possibility of extending the provisions of an APA to a period ranging from the first day of the calendar year during which the subject first applied for an APA until the APA came into force if, after reviewing the first application, an APA was refused on the grounds that no agreement was reached between the tax authorities of a foreign counterpart. 5. Conclusion of the APA: at this stage, the subject must inform the FTT of his consent (disagreement) with the FTT decision in a manner that he chooses. If such a notification is not made within 30 days of receiving the decision, the subject is deemed to disagree with the decision. During the implementation review phase, the FTT will assess whether the proposed pricing method and other assumptions and circumstances necessary for the conclusion of a given APA are appropriate; particularly if the APA contributes to the elimination of double taxation and if there is a risk that the taxpayer will receive an „undue tax benefit.“ The regulation aims to fill the legal void resulting from the absence of a formal procedure for concluding pre-price agreements for cross-border transactions with foreign tax authorities and to encourage taxpayers to use this instrument. According to the order, the procedure for concluding a pre-price agreement (APA) contains the following characteristics: Since 2012, the authorized body in Russia has received 82 projects from Apa, 25 of which unilaterally (i.e. an agreement between the TTF and the Russian taxpayer) with Russian taxpayers OAO Gazpromneft, OAO NK Rosneft , PAO Aeroflot and AO. Since then, the question of whether bilateral APA can already be launched in Russia on the basis of the Bilateral Agreement (MAP) procedure under an applicable tax agreement has been discussed.

The new procedures set out in the draft regulation confirmed this possibility in accordance with international standards. The bill aims to optimize the procedure for concluding advanced price agreements (`APA`) in order to define the conditions under which transactions can be considered controlled and to introduce other specific amendments to the provisions of the Russian tax code. On 27 March 2020, the Russian Ministry of Finance published an updated version of the bill „On the amendment of the first part of the Russian tax code to improve price tax control and the procedure for concluding advanced price agreements“ (hereafter the „Bill“). On 17 March 2017, the Russian Ministry of Finance (MoF) issued a draft decision on the procedure for concluding bilateral pre-price agreements (AAA) with authorized agencies of foreign states. This draft regulation fills a legal gap in Russian management of transfer pricing rules and contractual obligations with foreign states. Although the conclusion of APA in the Russian tax code (notably by Article 105.20, point 2, of the Russian tax code) has been general since 2012 for the principals subject, only this proposal for a decision has introduced the procedure for concluding bilateral APA.