APA & MAP COUNTRY GUIDE 2017 - DLA Piper€¦ · APA & MAP COUNTRY GUIDE 2017 Managing uncertainty in the new tax environment. 01 | APA & MAP Country Guide 2017 ABOUT DLA PIPER We

APA & MAP COUNTRY GUIDE 2017Managing uncer tainty in the new tax environment

01 | APA & MAP Country Guide 2017

ABOUT DLA PIPER

We strive to be the leading global business law firm by delivering quality and value to our clients. We achieve this through practical and innovative legal solutions that help our clients succeed. We deliver consistent services across our platform of practices and sectors in all matters we undertake.

Our clients range from multinational, Global 1000, and Fortune 500 enterprises to emerging companies developing industry-leading technologies. They include more than half of the Fortune 250 and nearly half of the FTSE 350 or their subsidiaries. We also advise governments and public sector bodies.

DLA Piper is a global law firm with lawyers and economists located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world.

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The increasing scrutiny and growing complexity of transfer pricing issues means it is now more crucial than ever for multinationals to ensure that they are proactively managing the associated risks. Advance pricing agreements (‘APAs’) are quickly becoming the strategy of choice for multinationals in this regard. APAs were first negotiated in the 1980s as a way for taxpayers to prospectively apply approved transfer pricing methods without the risk of future adjustments or double taxation. In the decades following the first agreements, APA programs have been rolled out by governments around the world. This increase in interest is expected to continue, particularly when taking into account the recent recommendations of the OECD/G20 that countries should seek to implement bilateral APA programs as soon as they have the capacity to do so.1

The decision of whether an APA is appropriate will be unique for every company, country and transaction. A significant number of factors should be taken into account, including strategic considerations and local knowledge beyond the stated rules. Furthermore, there may be numerous areas of preference for government APA teams associated with the process which may not be explicitly stated in the law or this guide. To best understand these areas, please contact us to discuss further. We work with our clients, the DLA Piper network, as well as governments worldwide, on all matters related to APAs.

DLA Piper has prepared this guide to inform taxpayers about the APA application procedures as they currently exist in 39 countries worldwide. The guide provides the acceptance criteria and any collateral issues that may be taken into account when considering the suitability of an APA, the application filing process and post-agreement compliance requirements, country statistics, the double taxation treaty network of each country and other relevant information. This guide is the first of its kind, and the first version. While all reasonable care has been taken to ensure that the content in this publication was accurate on the stated publication date, it is intended for use as a guide only and should not be relied upon without seeking formal advice.

We trust you will find this guide to be a valuable resource.

FOREWORD

1 Best Practice 4 of the OECD/G20 Base Erosion and Profit Shifting Project, Making Dispute Resolution Mechanisms More Effective, Action 14 – 2015 Final Report, p 30.

Joel Cooper

Co-Head International Transfer Pricing

Randall Fox

Co-Head International Transfer Pricing

CONTENTS

ABOUT DLA PIPER ............................01

FOREWORD.........................................02

GLOSSARY ............................................04

ABBREVIATIONS ................................06

INTRODUCTION ...............................08

COUNTRY GUIDES ...........................14

Albania ..............................................16

Australia ...........................................20

Austria ..............................................24

Belgium .............................................28

Canada ..............................................34

China .................................................40

Colombia ..........................................46

Czech Republic ...............................50

Denmark ..........................................54

Finland ...............................................58

France................................................62

Georgia .............................................68

Germany ...........................................74

Hong Kong .......................................82

Hungary ............................................86

India ...................................................92

Indonesia ..........................................98

Ireland ...............................................104

Israel ..................................................110

Italy ....................................................114

Japan ..................................................118

Luxembourg ....................................124

Mexico ..............................................130

Netherlands .....................................136

New Zealand ...................................142

Peru ...................................................146

Poland................................................150

Portugal ............................................156

Romania ............................................160

Russia ................................................166

Singapore ..........................................170

Spain ..................................................176

Sweden ..............................................180

Switzerland ......................................186

Thailand ............................................190

Ukraine .............................................194

United Kingdom .............................200

United States ...................................206

Vietnam .............................................214

DLA PIPER CONTACTS BY COUNTRY ............................................222



GLOSSARY

Advance pricing agreement (or ‘APA’)

An APA is an agreement that specifies the transfer pricing arrangements that a taxpayer will apply to certain transactions for an agreed future period.

Arm’s length principle

The international consensus for determining transfer prices for direct taxation purposes, as elaborated in Article 9 of the OECD Model Tax Convention: ‘[where] conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly’.1

Arm’s length range A range of arm’s length results, that may arise due to the application of a transfer pricing method using comparable uncontrolled transactions, or the application of more than one transfer pricing method.

Bilateral advance pricing agreement (or ‘BAPA’)

An APA involving the Competent Authorities of two tax treaty partner countries.

Comparability analysis

An analysis undertaken in order to determine whether the controlled transaction(s) are comparable to one or more uncontrolled transactions for the purpose of accurately delineating the transaction(s) and selecting and applying the transfer pricing method.

Comparable uncontrolled transaction

A transaction between two independent entities that is comparable to the controlled transaction being analysed.

Compensating adjustment

An adjustment by a taxpayer to their tax calculations to report an amount for a controlled transaction that is consistent with the arm’s length principle, though different to the actual amount charged between the parties.

Competent authority

The designated representative of a government for the purposes of application of a tax treaty.

Controlled transactions

Transactions that fall within the scope of transfer pricing legislation (e.g., transactions between associated parties).

1 OECD Transfer Pricing Guidelines 2010, p 23.


Corresponding adjustment

An adjustment to the tax liability of a taxpayer that is made by the tax administration of the second tax jurisdiction that corresponds to a primary adjustment made by the tax administration in the first jurisdiction and ensures consist allocation of profits and no economic double taxation.

Critical assumptions

Critical assumptions are specific assumptions concerning operational, legal or financial matters relating to a taxpayer, third party, industry or economic conditions, the continued existence of which is necessary for an APA to remain acceptable to all parties. Should a critical assumption be triggered, the APA may need to be revised or cancelled.

Functional analysis An analysis of the functions performed, assets employed and risks borne by the parties to controlled transactions and the uncontrolled transactions for the purposes of performing the comparability analysis.

Multilateral advance pricing agreement

An APA involving the Competent Authorities of three or more tax treaty partner countries.

Multinational enterprise

An entity that is party of a group of companies with operations in two or more countries.

Mutual agreement procedure

A specific procedure by which Competent Authorities can resolve issues concerning the application of a tax treaty.

Permanent establishment

A threshold for the taxable presence of a non-resident taxpayer that is typically defined under domestic tax law and in the ‘permanent establishment’ article of an applicable tax treaty.

Primary adjustment

A adjustment made by the tax administration in a first jurisdiction to the taxable profits of an entity as a result of applying the arm’s length principle to one or more controlled transactions.

Profit potential The expected future profits or losses.

Transfer pricing method

A method or methods that can be applied to establish whether conditions of controlled transactions are consistent with the arm’s length principle.

Unilateral advance pricing agreement

An APA involving the taxpayer and the tax administration in a single jurisdiction.


ABBREVIATIONS

APA Advance pricing agreement

CA Competent authority

DPT Diverted profits tax

IFRS International financial reporting standards

MAP Mutual agreement procedure

MNE Multinational enterprise

OECD Organisation for economic co-operation and development

PE Permanent establishment

SME Small and medium-sized enterprises

TP method Transfer pricing method

VAT Value added tax



The OECD/G20’s base erosion and profit shifting project foreshadowed significant changes to transfer pricing guidelines, information disclosure requirements and dispute resolution procedures. The OECD itself has recognised that these changes will lead to an increase in transfer pricing disputes, and has encouraged dispute resolution through the mutual agreement procedure (‘MAP’), and dispute prevention through advance pricing agreements (‘APAs’). For these reasons, it is essential that multinational enterprises (‘MNEs’) have strategies in place to prevent/manage disputes from arising, or proactively deal with them when they do.

INTRODUCTION

WHAT ARE THE BENEFITS OF AN APA?

APAs have become increasingly popular with MNEs in recent years as a mechanism for obtaining certainty and alleviating the risk of double taxation. The APA process, which is voluntary, provides a cooperative way of resolving disputes or potential disputes by generating a constructive working relationship between the taxpayer and the tax administration(s).

1. Eliminate double taxation: A bilateral or multilateral APA will eliminate the potential for double taxation.

2. Certainty: APAs provide a solution for taxpayers to resource-plan and manage their overall tax rate without the uncertainty of transfer pricing assessments.

3. Dispute resolution: APAs can be used to bring about long-term solutions to transfer pricing or other tax related disputes by resolving them on a prospective basis.

4. Reputation: The reputation of the taxpayer can be enhanced with tax administrations in numerous countries, as well as publically, by working cooperatively toward an APA.

5. Cost savings: There can be compliance cost savings for the duration of the APA, in particular when considering the audit and dispute costs avoided.

6. Resource management: MNEs can manage their tax resources more effectively and efficiently by electing when and where to engage with tax administrations.

BENEFITS OF AN APA


FORMAL CONSIDERATIONS WHEN REQUESTING AN APA

While a growing number of jurisdictions have implemented legislation or formal guidance establishing an APA program, the approach taken is not uniform. Considerations such as: eligibility for an APA, filing fees and deadlines, procedures specifically designed for small and medium-sized enterprises (‘SMEs’), and rollback availability can vary significantly. As a result, such factors need to be taken into account before initiating the APA application process.

Taxpayers need to ensure that the transaction(s) sought to be covered under the APA meet the relevant acceptance criteria. For instance, Albania, China, Georgia, Hong Kong, and Ukraine have set a minimum threshold for the value of the relevant inter-company transaction(s) that is required to be met in order to be eligible to apply for an APA. Whereas in countries such as France, Germany, the Netherlands, and the United States have specific guidance and procedures for SMEs that actively encourage APA applications, as long as the transaction(s) are sufficiently complex, and double taxation is a distinct possibility in the absence of an APA.

The approach taken in relation to filing fees also varies considerably. In the United States, Canada, and a number of continental European jurisdictions (including Albania, Austria, Czech Republic, Germany, Hungary, Luxembourg, Poland, Portugal, Romania, and Sweden) a filing fee is payable. On the other hand, some jurisdictions such as Australia, Japan, Singapore, and the United Kingdom do not charge a filing fee.

In addition to taxpayer specific considerations, each of the following should be considered before initiating the APA application procedure:

■■ Acceptance criteria and collateral issues: some jurisdictions will have guidance or discretionary practices that will be considered by the CA on determining whether a taxpayer is eligible to proceed with a formal APA application. Factors can include the size of the taxpayer’s organisation and the revenue it generates, the complexity of the transaction(s) intended to be covered by the APA, and any collateral issues such as outstanding administrative or judicial proceedings.


■■ Timing requests and deadlines: strict timing deadlines on the initiation of the APA application process and the submission of supporting documentation may be imposed on the taxpayer. Missing these deadlines could result in certain years not being covered by the APA.

■■ Term limits: the taxpayer will discuss with the CAs at the pre-filing stage the term of the proposed APA. Typically an APA will have a five-year term, however this will vary depending on the jurisdiction and how flexible any local rules are.

■■ Filing fees: a number of jurisdictions require a filing fee to be paid.

■■ Rollback availability: some jurisdictions allow for the outcome of an APA to be applied retroactively to previous years (‘rollback’). Rollback availability is subject to the nature of transaction(s) to be covered under the APA and whether they are considered by the CA to be sufficiently similar to those in the previous years that the taxpayer seeks to cover.

■■ Other considerations: for taxpayers seeking unilateral APAs, it should be noted that economic double taxation may arise if the tax administration of other jurisdiction does not agree with the approach adopted in the APA. For bilateral and multilateral APAs, taxpayers are not involved in the negotiations between the CAs. These are governed by the MAP in the relevant double taxation treaties.


THE APA APPLICATION PROCESS

The APA application process is in many jurisdictions governed by legislation, regulations and/or procedural guidance issued by the tax administration. Typically, it involves a pre-filing stage, a formal application stage, a review and negotiation stage, and implementation and post-agreement compliance stages.

At the pre-filing stage, taxpayers are encouraged, or are required in certain jurisdictions, to meet with the CA of the tax administration to initiate the formal APA application process. Pre-filing meetings generally involve:

■■ A discussion of the appropriateness of an APA to the taxpayer’s circumstances;

■■ The proposed TP method;

■■ The cross-border transaction(s) intended to be covered;

■■ The term of the proposed APA; and

■■ Whether a unilateral, bilateral, or multilateral APA is sought.

In some jurisdictions, pre-filing can be conducted on an anonymous basis. After the pre-filing meeting, the CA will decide whether an APA is appropriate given the taxpayer’s circumstances.

PRE-FILING

FORMAL SUBMISSION

Once the pre-filing stage has been concluded, the taxpayer may be invited to submit a formal APA application. Typically, this application will require:

■■ Details of the cross border transaction(s) intended to be covered by the APA;

■■ A comparables analysis;

■■ The selected TP method;

■■ Critical assumptions; and

■■ The term of the APA.


During the review and negotiation stage, the CA will analyse and evaluate the APA application and supporting documentation. The CA may require further documentation from the taxpayer in order to complete the review stage. For unilateral APAs the taxpayer will negotiate directly with the tax administration (or CA). For bilateral and multilateral APAs, the CA will negotiate with the relevant tax treaty partner(s) before putting an agreement to the taxpayer for signing.

Once the APA has been signed and has become effective, it will in most cases be subject to annual compliance procedures. Taxpayers will be required to prepare and lodge a report for each income year covered by the APA, usually together with their tax return. This report will typically contain information and documentation sufficient to demonstrate compliance with the terms of the APA.

Jurisdictions with an established APA program usually allow for and have mechanisms to renew an APA at the request of the taxpayer. Renewals are more likely to be granted if the taxpayer requests the renewal within a reasonable period before expiry of the existing term, and can demonstrate that the circumstances have not changed significantly so as to warrant fresh negotiations.

REVIEW & NEGOTIATION

RENEWAL PROCESS

IMPLEMENTATION & COMPLIANCE


WHAT IS THE ROLE OF THE MUTUAL AGREEMENT PROCEDURE?

Cross-border controlled transactions can expose MNEs to double taxation. For instance, adjustments made by one tax administration may result in the same income being subject to tax in the other jurisdiction. The MAP article in tax treaties that mirror article 25 of the OECD Model Convention on Income and on Capital (‘the OECD Model’), provides a mechanism for taxpayers to seek relief from this double taxation. The MAP provisions also allow tax treaty partners to negotiate bilateral and multilateral APAs.

Outside of transfer pricing, the MAP can be used by taxpayers in any situation where there is taxation that is not in accordance with the treaty. Examples of issues often taken to MAP include:

■■ Determining beneficial ownership of the relevant income;

■■ Assessment of capital gains tax;

■■ Residency of a taxpayer;

■■ Existence of a permanent establishment (‘PE’);

■■ Attribution of profit to a PE; and

■■ Classification of payments, such as interest, royalties, or dividends.

If tax treaty partners cannot come to an agreement on a particular matter, an increasing number of treaties provide the possibility for arbitration.

COUNTRY GUIDES



ALBANIA

KEY FEATURES

Competent authority

General Directorate of Taxation (‘GDT’)

APA provisions/guidance

Article 36/7 of Law No 8438, date December 28, 1998 ‘on Income Tax’; and APA instructions issued by the GDT.

Types of APAs available

Unilateral, bilateral, and multilateral APAs are available.

APA acceptance criteria

Applications will only be considered where the controlled transaction(s) to be covered during the term of the proposed APA exceed, in aggregate, the value of ALL 40 million (approx. USD 236,000); or the controlled transaction(s) is sufficiently complex and is of high commercial or economic significance to Albania.

Key deadlines The commencement date for the APA must be the fiscal year that follows the date of signing the APA.

APA term limits There is a five year maximum term for a unilateral APA. There are no term limits for bilateral or multilateral APAs.

Filing fee The filing fee is ALL 50,000 (approx. USD 400), plus an administrative fee:

Unilateral APA application ALL 300,000 (approx. USD 2,400)

Bilateral APA application ALL 1.2 million (approx. USD 9,450)

Multilateral APA application ALL 1.2 million (approx. USD 9,450)

95 per cent of the administrative fee will be refunded to the Taxpayer if the GDT rejects the APA application within 30 days from the date of rejection.

Rollback availability Rollback is not available.

Collateral issues Collateral issues will not be dealt with within the APA. Where collateral issues, such as deductibility, applicability of withholding taxes, existence of and profit attribution to a PE, are identified during the APA process, these may be submitted to the GDT for consideration.


ALBANIA (cont’d)

PRE-FILING REQUIREMENTS

Overview A pre-filing meeting with the GDT is mandatory before the submission of an APA application. Pre-filing meeting must be initiated by the Taxpayer through filing of a ‘Pre-filing Questionnaire’ form, which requires the disclosure of the following information:

■ the Taxpayer’s name and registration number (this can be left blank for anonymous pre-filing);

■ the Taxpayer representative’s name and contact information;

■ proposed term of the APA;

■ type of APA requested;

■ any foreign jurisdictions involved in the transaction(s) covered;

■ the proposed tested party; and

■ proposed dates and times for a pre-filing meeting.

The GDT will respond to the Taxpayer or representative and the pre-filing meeting will be held within 60 days from the receipt of the request. Any statement or representation made by the GDT in the pre-filing meeting is considered informal advice and will not be binding on the GDT.

Anonymous pre-filing availability

Anonymous pre-filing is available.

APPLICATION REQUIREMENTS

Content of APA application

The formal APA application must contain the following:

■ a declaration that the APA application contains all relevant facts and that they are true, correct and complete;

■ the Taxpayer’s representative name and contact information;

■ the associated enterprises involved in the APA and organisational structure, place of business and tax residence;

■ indication of the type of APA sought; ■ the proposed term to be covered by the APA;■ the controlled transaction(s) to be covered by the APA;


ALBANIA (cont’d)

■ descriptions of the key agreements between the associated enterprises;

■ the details of any significant TP arrangements or practices;■ a functional analysis of the Taxpayer entity’s business;■ details of the economically significant functions performed by

each party to the controlled transaction(s), assets used in the process and risks assumed, with a focus on the key factors for realising the controlled transaction(s) covered under the APA;

■ an industry analysis and the market in which the Taxpayer operates;

■ an explanation of the Taxpayer’s position in the industry, including major competitors;

■ a selection and application of the TP method;■ the tax and financial position of all associated enterprises

involved in the APA for the last three years, including sales, cost of goods sold, operating expenses, profits before taxes, assets, liabilities, number of employees and any other relevant data;

■ financial forecasts and budgeting for the term of the proposed APA; and

■ a description of critical assumptions.

Language No specific guidance.

SME provisions No specific guidance.

OTHER PROCEDURAL CONSIDERATIONS

General The GDT follows a standard pre-filing, application and monitoring process. There are no unique procedural features.

Monitoring & compliance

Taxpayers are required to submit to the GDT a completed ‘APA Annual Compliance Report’ for each of the tax periods covered by the APA.

Renewal procedure An APA renewal request will go through the same stages as the initial APA request. In practice, it is expected that where there are no significant changes to facts or transaction(s), the evaluation and negotiation period will be significantly shorter.

COUNTRY EXPERIENCE

Statistics The GDT has had an APA program since 2015.


DOUBLE TAXATION TREATY NETWORK

The following treaties include MAP provisions which are the basis for bilateral and multilateral APA negotiations:

AustriaBelgiumBosnia-Herzegovina BulgariaChinaCroatiaCzech RepublicEgyptEstoniaFranceGermanyGreeceHungaryIcelandIndia(IV)

IrelandItalyKorea (Republic of)Kosovo

LatviaMacedoniaMalaysia MaltaMoldovaMontenegroNetherlands(I)

NorwayPolandRomaniaRussiaSerbiaSingaporeSloveniaSpainSwedenSwitzerlandTurkeyUnited Kingdom(I), (IV)

ALBANIA (cont’d)

MAP PROCEDURE

MAP provisions There are no specific provisions for the MAP procedure in domestic law.

NOTES

I denotes treaties with MAP arbitration provisions.

II denotes treaties with the USSR that remain applicable until a separate tax treaty is concluded.

III denotes treaties between the countries’ representative office in Taipei and the Taipei Economic and Cultural Office in the relevant country.

IV denotes treaties that became effective within the last five years.

V denotes treaties that are awaiting ratification.

VI denotes MAP provisions identical to para 3, art 25 of the OECD Model Convention with respect to Taxes on Income and on Capital.

VII arbitration is to be conducted under the statutes of the ECJ.

VIII arbitration is to be conducted under the statutes of the ICJ.


KEY FEATURES

Competent authority

Australian Taxation Office (‘ATO’)


Law Administration Practice Statement 2015/4 (‘PSLA 2015/4’) and Issued guidance available on the ATO website




According to PSLA 2015/4, requests are more likely to be accepted if TP issues are complex; uncertainty exists as to how TP rules apply; and there is a high probability of double taxation without an APA.

Key deadlines The critical dates negotiated with the ATO during the early engagement stage will determine the date from which the APA will commence.

APA term limits There is a five year maximum term for an APA.

Filing fee There is no filing fee.

Rollback availability Decisions will be made by the ATO on a risk assessment basis.

Collateral issues Administrative or tax issues that are relevant to and may affect the outcome of the APA should be addressed and resolved at the pre-filing stage with the ATO.


Overview Pre-filing in Australia is called ‘early engagement.’ An early engagement form containing an outline of the proposed APA must be completed that includes:

■ name and tax residence country of parties involved;■ global group structure;■ role of Australian entity within the global value chain;■ cross border dealings covered;■ extent of all cross border dealings;■ TP methodology proposed; and■ proposed term of the APA.

AUSTRALIA


If the request for a pre-filing conference is accepted, preliminary discussions will address the appropriate treatment of cross border dealings and any collateral issues. A request review workshop will follow, and the taxpayer will be invited to lodge a formal APA application.


Anonymous pre-filing is not available.



The ATO will discuss and agree what information is required during early engagement. The information must allow the ATO to ascertain:actual conditions relevant to the cross border dealings:

■ arm’s length conditions relevant to the cross border dealings;

■ proposed TP method;

■ expected result of the proposed method;

■ critical assumptions;

■ information agreed to in the early engagement stage or as required; and

■ bilateral APAs: information requests made by the tax treaty partner(s) in relation to the APA application and copies of any information supplied by the foreign entity to the tax treaty partner(s).

Language The documentation should be submitted in English.

SME provisions No specific guidance


General The ATO follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must lodge the ‘Annual Compliance Report’ (‘ACR’) to the ATO for the duration of the APA. Details as to what should be included in the ACR are provided on a case by case basis.

AUSTRALIA (cont’d)


Renewal procedure

Applications for the renewal of APAs are required to be lodged six months before expiry. An APA renewal request will go through the same stages as the initial APA request, unless the ATO considers that a streamlined process is more appropriate. According to PSLA 2015/4 this is more likely when:

■ there have been no material changes to cross border dealings or the role of the Australian entity within the global value chain;

■ there are no proposed changes to the existing APA; and

■ it is unlikely there will be material changes to dealings covered under the renewed APA.

In the streamlined process the ATO will consider:

■ whether an APA is still appropriate;

■ the previous APA’s arm’s length outcomes;

■ any material changes to the covered dealings;

■ the updated benchmarks are appropriate; and

■ evidence of compliance with the existing APA.


COUNTRY EXPERIENCE

Statistics There were 131 active APA applications during income year 2015-16 (as at 30 June) and 41 completed applications. The average completion time was 10 months for bilateral APAs and 16 months for unilateral APAs.1 The ATO has had an APA program since 1991.

MAP PROCEDURE

MAP provisions Taxation Ruling 2000/16 – Income Tax: international transfer pricing transfer pricing and profit reallocation adjustments, relief from double taxation and the MAP.



1 The average completion time was 20 months for bilateral APAs and 12 months for unilateral APAs during income year 2014-15.



Argentina Austria Belgium Canada Chile (IV)

China Czech Republic Denmark Fiji FinlandFranceGermany(I, IV)

Hungary India Indonesia Ireland Italy JapanKiribati Korea (Republic of) Malaysia Malta

MexicoNetherlandsNew Zealand(I)

NorwayPapua New Guinea Philippines Poland Romania Russia Slovakia South Africa Spain Sri Lanka Sweden Switzerland(I, IV)

Taipei(III)

Thailand Turkey(IV)

United Kingdom United States Vietnam

NOTES










AUSTRIA

KEY FEATURES

Competent authority

Ministry of Finance and the Taxpayer’s local tax office (‘Tax authorities’)


Article 118 of the Federal Fiscal Code for unilateral APAs (‘advanced rulings’). Taxpayers must rely on the MAP provisions in DTT of which Austria is signatory to secure a bilateral or multilateral APA.




No specific guidance.

Key deadlines No specific guidance.

APA term limits There is no maximum term for bilateral or multilateral APAs, however in practice most APAs are effective for three to five years.

Filing fee There is no filing fee for bilateral or multilateral APAs. For advance rulings, filing fees are between EUR 1,500- EUR 20,000 (approx. USD 1,600-USD 21250) depending on the sales revenues of the taxpayer for unilateral APAs:

Revenue up to EUR 400,000 (approx. USD 425,000) – EUR 1,500 (approx. USD 1,600)

EUR 400,001-700,000 (approx. USD 425,001-744,000) – EUR 3,000 (approx. USD 3,200)

EUR 700,001-9,680,000 (approx. USD 744,001-10.3 million) – EUR 5,000 (approx. USD 5,300)

EUR 9,680,001-38,500,000 (approx. USD 10,300001-40.9 million) – EUR 10,000 (approx. USD 10,650)

Revenue from EUR 38,500,001 (approx. USD 40.9 million) – EUR 20,000 (approx. USD 21,250)

Rollback availability


Collateral issues No specific guidance.


AUSTRIA (cont’d)


Overview No specific guidance.





For unilateral APAs, the Taxpayer must provide the following written documentation:

■ the facts on which the fiscal assessment is based;

■ the tax assessment;

■ the tax rules the assessment is based on;

■ the taxes or findings and the periods of time for which the advanced ruling shall apply; and

■ the extent of the applicant’s reporting obligations.

There is no specific guidance for bilateral or multilateral APAs.

Language Documentation should be submitted in German. However in practice, the CA has accepted bilateral APAs applications in English.



General The Tax authorities follow a standard application and monitoring process. There are no unique procedural aspects.



Renewal procedure



AUSTRIA (cont’d)



COUNTRY EXPERIENCE

Statistics Austria does not make publicly available statistics on APAs. The formal procedure for obtaining advance rulings has been in existence since 2011.

MAP PROCEDURE

MAP provisions There are no specific provisions for the MAP procedure in Austria.

Albania Algeria Armenia Azerbaijan(I)

AustraliaBarbados Bahrain Belarus BelgiumBelizeBosnia and Herzegovina(I)

BrazilBulgariaCanadaChileChinaCroatiaCubaCyprusCzech RepublicDenmarkEgyptEstoniaFinlandFrance

Germany(I), (IV)

GeorgiaGreeceHong KongHungaryIndiaIndonesiaIranIrelandIsraelItalyJapanKazakhstanKyrgyzstanKorea (Republic of)KuwaitLatviaLibyaLiechtensteinLithuaniaLuxembourgMalaysiaMaltaMacedonia(I)

Mexico


AUSTRIA (cont’d)


NOTES









MoroccoMoldovaMongoliaMontenegro(IV)

New ZealandNepalNetherlandsNorwayQatar(IV)

PakistanPhilippinesPolandPortugal(VI)

RomaniaRussiaSan MarinoSaudi ArabiaSerbiaSingapore

SloveniaSpainSouth AfricaSwedenSwitzerlandSyriaTaipei(III)

Tajikistan(II)

ThailandTunisiaTurkeyTurkmenistan(II)

United KingdomUkraineUnited Arab EmiratesUnited StatesUzbekistanVenezuelaVietnam


BELGIUM

KEY FEATURES

Competent authority

Office for Advance Decisions in Tax Matters (‘Ruling Commission’) for unilateral APAs; and General Administration of Taxation of the Department of International Affairs for bilateral and multilateral APAs (‘Tax authorities’)


Articles 20-28 of the Law of 24 December 2002 for unilateral APAs; and an information brochure available on the Belgian Federal Public Service Finance website for bilateral and multilateral APAs.





Key deadlines Unilateral APA applications must be filed in the same accounting year which they are intended to cover. Applications cannot relate to situations or transactions that have already produced effects from a tax perspective. Bilateral and multilateral applications must in principle be filed prior to the intended transactions. For practical reasons, the General Administration of Taxation may allow for bilateral and multilateral APAs to enter into force on the first day of the financial year even if some transactions have already taken place.




BELGIUM (cont’d)


Rollbacks are not available for unilateral APAs. Rollback is available for bilateral and multilateral APAs when the relevant facts and circumstances of prior years are identical to those in the proposed APA and filing deadlines have not expired when the bilateral or multilateral APA is concluded with the foreign tax authority. The CA must also agree with the rollback.

Collateral issues APA applications will be rejected if:

■ the application relates to an appeal or to legal proceedings between the Belgian state and the applicant;

■ the application deals with recovery and prosecution;

■ the application relates to specific issues, such as tax rates, procedures, and prescriptions;

■ essential elements of the transaction described are linked to a tax haven that does not cooperate with the OECD; and

■ the transaction described has no economic substance in Belgium.


Overview Pre-filing applications should include: ■ a brief description of the transaction to be covered;

■ the relevant tax provisions as they relate to the transaction; and

■ any previous rulings and guidelines issued by the tax authorities.




BELGIUM (cont’d)



Applications for unilateral APAs must be submitted to the Ruling Commission and include:

■ the identity of the Taxpayer;

■ a description of the business activities of the Taxpayer;

■ a full description of the particular situation or transaction; and

■ reference to the statutory or regulatory provisions that will constitute the basis of the decision.

Applications for bilateral and multilateral APAs must be submitted to the General Administration of Taxation of the Department of International Affairs and include:

■ the identity and description of the relevant parties of the entity;

■ period of time to be covered by the proposed APA;

■ description of intercompany transactions;

■ TP method;

■ comparative studies;

■ functional analysis;

■ any unilateral rulings that the group has concluded;

■ financial data of the company concerned; and

■ a power of attorney declaration accompanying applications filed by agents on behalf of the Taxpayer.

Language Applications for a unilateral APA should be submitted in Dutch or French. Applications for a bilateral or multilateral APA should be submitted in Dutch, French, or German. However in practice, English may be accepted. Supporting documentation may be submitted in Dutch, French, German, or English.



BELGIUM (cont’d)


General The Tax authorities follow a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


The Ruling Commission in its decision may require Taxpayers to provide evidence of the correct application of unilateral APAs through documentation submitted with its annual tax return.

Renewal procedure

No specific guidance

COUNTRY EXPERIENCE

Statistics There were 602 APAs granted in 2015. Unilateral APAs are usually issued within three months, and the average completion time was eight months for bilateral and multilateral APAs.

MAP PROCEDURE



BELGIUM (cont’d)



AlbaniaAlgeriaArgentinaArmenia(II)

AustraliaAustriaAzerbaijan(II)

BahrainBangladeshBelarusBosnia and HerzegovinaBrazilBulgariaCanadaChileChina(IV)

CongoCroatiaCyprusCzech RepublicDenmarkEcuadorEgyptEstoniaFinland

FranceGabonGeorgia(II)

GermanyGhanaGreeceHong KongHungaryIcelandIndiaIndonesiaIrelandIsraelItalyIvory CoastJapanKazakhstanKoreaKosovoKuwaitKyrgyzstan(II)

LatviaLithuaniaLuxembourgMacedonia


BELGIUM (cont’d)


MalaysiaMaltaMauritiusMexicoMoldova(II)

MongoliaMontenegroMoroccoNetherlandsNew ZealandNigeriaNorwayPakistanPhilippinesPoland(I)

PortugalRomaniaRussiaRwandaSan Marino Senegal Serbia

Singapore Slovak RepublicSloveniaSouth AfricaSpainSri LankaSweden SwitzerlandTaipei(III)

Tajikistan(II)

ThailandTunisiaTurkeyTurkmenistan(II)

UkraineUnited Arab EmiratesUnited KingdomUnited States(I)

UzbekistanVenezuelaVietnam

NOTES










CANADA

KEY FEATURES

Competent authority

Competent Authority Services Division, Canada Revenue Agency (‘CRA’)


CRA Information Circulars IC 94-4R, IC94-4RSR, and TPM-11





Key deadlines Pre-filing meetings for the APA application must take place within 180 days after the end of the first taxation year that is to be covered by the APA.

APA term limits There are five year maximum terms, depending on the relevant facts and circumstances.

Filing fee A levy tailored to each case is applicable. This levy is charged on each accepted APA request or renewal and the amount will be included in an acceptance letter.


Rollbacks may be negotiated where the facts and circumstances of open prior years are similar to those on which the APA was concluded. Requests to retroactively apply an APA are separate and distinct from an APA request.

Collateral issues Any relevant tax issues, requests, or settlements should be raised at the pre-filing stage.


CANADA (cont’d)


Overview A pre-filing meeting is required before a formal APA request is submitted to the CRA. An APA request information package must be submitted at least two weeks before the pre-filing meeting and include:

■ the global structure of the Taxpayer and industry in which it operates;

■ the parties, participants, transactions, and transaction flows proposed to be covered;

■ transfer pricing, audit and reassessment history, and related domestic or foreign tax audit issues and status;

■ history of CRA issues, requests, and settlements;

■ reasons for APA request;

■ relevant transfer pricing policies, methodologies, practices, and accounting systems and policies;

■ the TP method contemplated under the APA and underlying rationale;

■ the impact of the proposed TP method on taxable income;

■ relevant key interpretive or technical taxation issues;

■ the reasons for requesting a bilateral APA or multilateral APA, countries involved, and the nature and extent of previous communications with foreign CA(s); and

■ the key individuals involved throughout the APA process (including officials, employees, experts, and advisors) and written authorisation for each representative.


Pre-filing is available on an anonymous basis.


CANADA (cont’d)



While the CRA considers each APA request as unique and may require additional documentation, the following items are generally to be included as part of an APA request:

■ details of the Taxpayer, representatives, and non-resident entities, including contacts and business identification numbers;

■ proposed term of APA and any rollback request;

■ proposed transaction(s) to be covered;

■ proposed TP method(s);

■ proposed terms and conditions and critical assumptions;

■ whether the request is for a bilateral, multilateral or unilateral APA;

■ declaration statement;

■ history, background, and business description of the Taxpayer;

■ global structure, organisational arrangement, operational setup, major transaction flows of the Taxpayer;

■ identification of all transaction flows that may have an impact on the pricing of covered transactions;

■ functional currency for each entity and currency used for the proposed transactions to be covered;

■ accounting and cost system, policies, procedures and practices, including any financial and tax accounting differences that may affect the TP methods;

■ detailed functional analysis of the Taxpayer and relevant entities to the covered transactions;

■ detailed industry and market analyses;

■ transfer pricing background: legal considerations, methodologies, relevant APA rulings in foreign jurisdictions, any relevant Canadian or foreign income tax audits, appeals, judicial or CA history, Canadian or foreign unassessed taxation years; and

■ proposed TP method and impact.

The CRA will commit to accept an APA by sending an acceptance letter within 45 days after receiving an APA request.


CANADA (cont’d)

Language The documentation should be submitted in English or French.



General The CRA follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must provide an APA report demonstrating APA compliance within the time period negotiated with the CRA and specified in the APA.

Renewal procedure

Renewals must be lodged no later than nine months before expiry.

COUNTRY EXPERIENCE

Statistics There were 132 active APA applications during income year 2014-15 and 31 completed applications. The average completion time for bilateral and multilateral APAs was 48 months. The CRA has had an APA program since 1990.

MAP PROCEDURE



CANADA (cont’d)



Algeria Argentina Armenia Australia Austria Azerbaijan Bangladesh Barbados Belgium Brazil Bulgaria Cameroon Chile(I)

China ColombiaCroatia Cyprus Czech Republic Denmark Dominican Republic Ecuador(I)

Egypt Estonia Finland France(I)

Gabon

Germany Greece(I)

Guyana Hong Kong(I), (IV)

Hungary Iceland(I)

India Indonesia Ireland(I)

Israel(IV)

ItalyIvory Coast Jamaica Japan Jordan Kazakhstan(I)

Kenya Korea (Republic of)Kuwait Kyrgyzstan Latvia LithuaniaLuxembourg Malaysia MaltaMexico(I)


CANADA (cont’d)

DOUBLE TAXATION TREATY NETWORK (cont’d)

Moldova(I)

Mongolia(I)

Morocco NetherlandsNew Zealand(IV)

Nigeria Norway Oman Pakistan Papua New Guinea Peru(I)

PhilippinesPoland(IV)

Portugal Romania Russia Senegal Serbia(IV)

Singapore Slovak Republic Slovenia

South Africa(I)

Spain Sri Lanka Sweden Switzerland(I)

Taipei(III)

Tanzania Thailand Trinidad and Tobago Tunisia TurkeyUkraine United Arab Emirates United Kingdom(I)

United States(I)

Uzbekistan Venezuela(I)

Vietnam(IV)

ZambiaZimbabwe

NOTES










CHINA

KEY FEATURES

Competent authority

The State Administration of Taxation (‘SAT’) and relevant local tax authority (‘Tax authorities’)


Bulletin on Issues Related to Improving the Administration of Advance Pricing Arrangements; and Bulletin [2016] 64, issued by the SAT.




Taxpayers must have an annual inter-company transaction value of over RMB 40 million (approx. USD 5.8 million) for each of the last three years.

The Tax authorities will prioritise Taxpayers also meeting one or some of the following criteria:

■ the Taxpayer has fully complied with the China inter-company transaction disclosure and contemporaneous documentation requirements, and the information disclosed is reasonably satisfactory;

■ the Taxpayer has an A-level tax credit rating;

■ the Taxpayer has an existing APA it intends to renew, and the facts and operational environment in the existing APA have not and will not foreseeably change;

■ the application materials, particularly the analysis on the value chain and location-specific advantages, are complete and thorough, and the pricing and calculation methods are reasonable; and

■ the Taxpayer cooperates with the tax authorities for negotiation and conclusion of an APA.

Key deadlines An APA will commence from the year during which the Tax authorities issue a ‘Notice of Tax Related Issues’ indicating the acceptance of the Taxpayer’s letter of intent.




CHINA (cont’d)


Rollback is available. The retrospective period can extend to a maximum of ten prior years if the related party transactions are the same or similar to those covered by the APA.

Collateral issues Administrative issues that are relevant to and may affect the outcome of an APA may be addressed and resolved at the pre-filing stage with the Tax authorities. Applications from Taxpayers under investigation by the tax authorities for tax issues will be refused.


Overview The Taxpayer must make a written request to the Tax authorities for a pre-filing meeting. The pre-filing meeting will require the following information and documentation:■ duration of the proposed APA;■ related parties involved and related party transaction to be

covered;■ organisational and management structure of the enterprise and

group it belongs to;■ business operations and transfer pricing documentation of the

enterprise for the most recent three to five years;■ allocation of functions and risks among related parties covered

under the APA, including the parties involved, personnel, expenses and assets;

■ market conditions, including industry development trends and competitive environment;

■ any location specific advantages including location savings and market premiums;

■ whether the proposed APA is intended to be retroactive in application;

■ in the case of a bilateral or multilateral APA applications, applications submitted for APAs with relevant foreign CA(s);

■ in the case of bilateral or multilateral APA applications, business operations and inter-company transaction of the related party involved for the most recent three to five years; and

■ any international double taxation issues and relevant explanations.


CHINA (cont’d)

If an agreement is reached during the pre-filing meeting, the Taxpayer will be required to submit a ‘Letter of Intent for Negotiation and Signing of an Advance Pricing Arrangement’ to the Tax authorities and submit the APA application proposal including the above information and documentation, as well as: ■ the proposed TP method and calculation method, functional

and risk analysis, comparability analysis and assumptions used for supporting such methods;

■ value chain or supply chain analysis;■ annual information on business scale, result forecasts and

plans for the proposed term of APA; and■ relevant domestic or international laws and rules in the

industry that have an impact on the APA.





If the tax authorities determine the APA application conforms to the arm’s length principle, a ‘Notice of Tax Related Issues’ consenting to the Taxpayer’s submission of a formal APA application will be issued. The Taxpayer must then submit a ‘Formal Application Letter for an Advance Pricing Arrangement.’

Language The documentation should be submitted in Chinese.



CHINA (cont’d)


General Taxpayers are required to coordinate with the tax authorities and make any adjustments to the proposed TP method during the stage of analysis and evaluation. A formal application will not be accepted until an agreement has been reached. Taxpayers applying for a unilateral APA must submit the relevant documentation to their local tax authority. Taxpayers applying for bilateral or multilateral APAs must submit the relevant documentation to both the State Administration of Taxation as well as the relevant local tax authority. For APAs involving two or more provinces, autonomous regions, municipalities or cities with independent planning, the SAT shall be the designated CA.


An Annual Compliance Report (‘ACR’) is required to be filed with the tax authorities within six months following each tax year end. The ACR must include:

■ documentation of the relevant business operations and implementation of the APA;

■ any need to amend or terminate the APA; and

■ any unsettled or previously unforeseen issues.

The tax authorities will monitor the Taxpayer’s implementation of the APA on an annual basis, with major areas of monitoring to include compliance with the provisions and requirements of the APA, whether the information provided in the ACR reflects the actual operations of the Taxpayer, and whether the assumptions in the APA are still valid.

Renewal procedure

Applications for the renewal of APAs are required to be lodged within 90 days prior to the expiration of the existing APA. The Taxpayer must submit an ‘Advance Pricing Arrangement Renewal Application’; a report specifying the implementation status of the of the existing APA; an explanation of any substantial changes to the facts or operational environment in the existing APA; and a forecast for the years covered by the renewal.


CHINA (cont’d)

COUNTRY EXPERIENCE

Statistics There were 149 active APA applications during tax year 2015 and 12 completed applications. China has been negotiating APAs since the mid-1990s, with the first unilateral and bilateral APAs signed in 1995 and 2005, respectively.

MAP PROCEDURE

MAP provisions Chapter 11 of the Special Tax Adjustment Measures (2009); and Bulletin on Promulgating the Implementing Measures for Mutual Agreement Procedure, Bulletin [2013] No. 56, issued by the SAT.



AlbaniaAlgeria ArmeniaAustraliaAustriaAzerbaijanBahrainBangladeshBarbadosBelarusBelgium(IV)

Bosnia-HerzegovinaBrazilBruneiBulgariaCambodiaCanadaChile(IV)

CroatiaCubaCyprusCzech RepublicDenmark(IV)

Ecuador(IV)

EgyptEstonia

Ethiopia(IV)

FinlandFrance(IV)

GeorgiaGermanyGreeceHong Kong(IV)

HungaryIcelandIndiaIndonesiaIranIrelandIsraelItalyJamaicaJapanKazakhstanKorea (Republic of)KuwaitKyrgyzstanLaosLatviaLithuaniaLuxembourgMacedonia


CHINA (cont’d)


MalaysiaMalta MauritiusMexicoMoldovaMongoliaMontenegroMoroccoNepalNetherlandsNew ZealandNigeria NorwayOmanPakistanPapua New GuineaPhilippinesPolandPortugal(VI)

Qatar RomaniaRussia(IV)

Saudi ArabiaSerbiaSeychelles

Singapore SloveniaSouth AfricaSpainSri LankaSudanSwedenSwitzerland(IV)

Syria Tajikistan ThailandTrinidad and TobagoTunisiaTurkeyTurkmenistan UkraineUnited Arab EmiratesUnited Kingdom(IV)

United StatesUzb ekistanVenezuelaVietnamZambiaZimbabwe(IV)

NOTES










COLOMBIA

KEY FEATURES

Competent authority

Colombian Tax Administration (‘DIAN’) and the General Director of DIAN delegated by the Finance Minister (‘Tax authorities’)


Article 260-10 of the Colombian Tax Code, modified by Article 112 Law 1819 of 2016; Decree 1625 of 2016; and Decisión 578 CAN.

Types of APAs Unilateral, bilateral, and multilateral APAs are available.


Requests are more likely to be successful if:■ transfer pricing issues are complex and uncertainty exists as

to how the arm’s length standard should be applied; and/or■ there is a high probability of double taxation without an

APA.

Key deadlines The Tax authorities must respond to the Taxpayer within nine months from the date of filing the APA application, and two years to reach an agreement to the Taxpayer.




APAs may only cover the fiscal year in which they are requested and the immediately preceding year.







COLOMBIA (cont’d)



The application should set out general information, including:■ the Taxpayer’s name, business address, tax identification

number, and country of residency;■ a description of the principal activities of the group, including

the place(s) where the activities are carried out;■ a description of the transaction(s) between the Taxpayer and

related business;■ financial and profit and loss statements, including the costs

and expenses incurred by the Taxpayer or related parties that have a contractual or business relationship with the Taxpayer;

■ the currency used in the principal transactions between the Taxpayer and related parties;

■ the transaction(s) the Taxpayer seeks to cover in the proposed APA;

■ a detailed description of the functions and activities carried out by the Taxpayer and the Colombian or non-resident related parties that maintain a contractual or business relationship with the Taxpayer, including a description of the assets held and the risks borne by each of the parties;

■ the TP method proposed by the Taxpayer to determine the transfer price, including the criteria and other objective elements used to demonstrate that the method is appropriate for the covered transaction(s) for which the Taxpayer is requesting an APA (the Taxpayer must submit financial information corresponding to the fiscal years to be covered and apply the proposed TP method to its intercompany transactions);

■ information on comparable transactions or companies, indicating the reasonable adjustments made to eliminate differences; and

■ any other information or documentation necessary for as required by the Tax authorities.


COLOMBIA (cont’d)

Language The documentation should be submitted in Spanish.



General The Tax authorities follow a standard application and monitoring process. There are no unique procedural aspects.


Either the Tax authority or the Taxpayer can modified the terms of the agreement:

■ The Taxpayer must notify the Tax authorities whether a critical assumption has been realised and submit supporting documentation with a proposed course of action (e.g., revision of the APA) within two months and the Tax authorities may, within two months as from the notification date, in a reasoned ruling approve or reject the amendment.

■ If the Tax authorities determine that significant changes have arisen in the assumptions considered in the initial APA, it may notify the Taxpayer accordingly. The Taxpayer shall have one month as from the notification date to prepare a duly supported amendment or to explain and verify the reasons for considering that there have been no substantial changes justifying the amendment of the APA. If by the end of this period the Taxpayer has not submitted the relevant amendment or has not explained in writing and sufficiently verified the reasons for not doing so, the Tax authorities will cancel the APA, by means of a duly reasoned ruling, leaving it ineffective as from the taxable year in which the change in circumstances occurred.

■ The Tax authorities may cancel a unilateral APA where the Taxpayer fails to comply with one or more of the provisions of the APA.

Renewal procedure



COLOMBIA (cont’d)

COUNTRY EXPERIENCE

Statistics Statistics have not been made publicly available.

MAP PROCEDURE




BoliviaCanadaChileCzech Republic(IV)

EcuadorIndia(IV)

Korea (Republic of)(IV)

Mexico(IV)

PeruPortugalSpainSwitzerland

NOTES










CZECH REPUBLIC

KEY FEATURES

Competent authority

International Taxation Unit of General Financial Directorate (‘Tax authorities’)


Section 38nc of the Income Tax Act; and Decree D-333.





Key deadlines APAs will only cover transactions for years that a Taxpayer is yet to file a tax return.

APA term limits No specific guidance.

Filing fee The Taxpayer must pay an administration fee of CZK 10,000 (approx. USD 400) before the APA has been concluded.


Rollback is not available, however the Taxpayer may assume that a method which has been consistently applied in the past and which is approved by the tax authorities for future transactions will be accepted for past tax periods.







CZECH REPUBLIC (cont’d)



The application should contain at least the following information:■ the names, addresses, and tax identification numbers of all

parties involved in the transaction, including non-residents;■ a description of the organisational structure, including the

elements of the entity abroad;■ a description of the commercial activities of the participating

persons;■ a description of the commercial transaction(s) covered by

the APA;■ the tax period for which the APA should be applicable;■ a description and documentation of the TP method through

which the price was determined, including all facts related to the commercial transaction(s);

■ critical assumptions; and■ the proposed wording of the APA.

Language The documentation should be submitted in Czech.



General The Tax authorities follow a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


There are no-post-agreement annual filing procedures.

Renewal procedure


COUNTRY EXPERIENCE

Statistics There were 40 APA application requests made in 2015 and 27 completed applications. The average completion time was 33 months for bilateral and multilateral APAs. The Tax authorities have had an APA program since 2006.




AlbaniaArmeniaAustraliaAustriaAzerbaijanBahrain(IV)

Barbados(IV)

BelarusBelgiumBosnia-HerzegovinaBrazilBulgariaCanadaChile(IV)

ChinaColombia(IV)

CroatiaCyprusDenmark(IV)

EgyptEstonia

EthiopiaFinlandFranceGeorgiaGermanyGreeceHong Kong(IV)

HungaryIcelandIndiaIndonesiaIran(IV)

IrelandIsraelItalyJapanJordanKazakhstanKorea (Democratic Republic of)Korea (Republic of)Kuwait


MAP PROCEDURE





LatviaLebanonLichtenstein(IV)

LithuaniaLuxembourg(IV)

MacedoniaMalaysiaMaltaMexicoMoldovaMongoliaMoroccoNetherlandsNew ZealandNigeriaNorwayPakistan(IV)

Panama(IV)

Philippines PolandPortugalRomaniaRussia

Saudi Arabia(IV)

Serbia & MontenegroSingaporeSlovakiaSloveniaSouth AfricaSpainSri LankaSwedenSwitzerlandSyriaTajikistanThailandTunisiaTurkeyUkraineUnited Arab EmiratesUnited KingdomUnited StatesUzbekistanVenezuelaVietnam

NOTES










DENMARK

KEY FEATURES

Competent authority

Danish Tax Office (‘SKAT’)


Guidance ‘CD1173 Advance Pricing Agreements’ available on the SKAT website (Danish only).


Bilateral and multilateral APAs are available.


There are no requirements as to complexity or the value of transactions. SKAT may ask that more transactions and/or more affiliates be included to accept an APA.

Key deadlines No specific guidance

APA term limits While there are no general term limits, APAs will typically run for five years.



While rollback is available on request, rollbacks will not prevent SKAT from initiating tax audits of previous income periods.

Collateral issues If SKAT already has initiated a tax audit, it may decide not to accept an APA application.


Overview SKAT recommends pre-filing meetings with the Taxpayer. To initiated pre-filing the Taxpayer should engage in informal dialogue with SKAT and take part in pre-filing meetings to discuss the transactions to be covered in the APA and the information that will be required in the formal application. Any foreign CA(s) relevant to the discussions should also be involved.


While there is no specific guidance, SKAT is often willing to discuss questions on an anonymous basis at their discretion and with some reservations.




After pre-filing meetings the Taxpayer should prepare and file an APA application, which must include:

■■ a description of the enterprise and the market;

■■ a description of the controlled transaction(s), including a functional analysis;

■■ a comparability analysis;

■■ a description of the adopted transfer pricing method(s);

■■ critical assumptions; and

■■ annual reporting on compliance (proposed by the taxpayer, typically a compliance statement made in connection with filing income tax returns).

Language The documentation may be submitted in Danish, Norwegian, Swedish or English.



General SKAT follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must file an annual compliance statement, stating that the basis and conditions for concluding the APA remains unchanged and the taxpayer is not in breach of any critical assumption. This should be filed together with the income tax return.

Renewal procedure

Existing APAs may be extended provided that the basis and conditions for concluding the APA remain materially unchanged, and the Taxpayer notifies SKAT in due time before expiry.

DENMARK (cont’d)


COUNTRY EXPERIENCE

Statistics There were 19 pending APA applications during income year 2015 and eight completed applications. SKAT has had an APA program since 1991. Although APAs are generally available in Danish law and via the MAP provisions in the Danish tax treaty network, Denmark does not have a formal APA program.

MAP PROCEDURE




Argentina Australia AustriaBangladesh Belgium BermudaBrazil British Virgin IslandsBulgaria Canada Cayman IslandsChile China(IV)

CroatiaCyprusCzech Republic(IV)

Egypt Estonia Faroe Islands Finland France

GeorgiaGermany GhanaGreece GuernseyHong Kong Hungary(IV)

Iceland India Indonesia Ireland Isle of ManIsraelItaly Jamaica Japan JerseyKenya Korea (Republic of) Kuwait(IV)

Latvia

DENMARK (cont’d)



Lithuania Luxembourg Macedonian Malaysia Malta Mexico Montenegro Morocco Netherlands New Zealand Nordic countries Norway Pakistan Philippines Poland Portugal Romania Russia SerbiaSingapore

Slovakia SloveniaSouth Africa Spain Sri Lanka Sweden Switzerland(I)

TaipeiTanzania Thailand Tunisia Turkey Uganda Ukraine United KingdomUnited StatesVenezuela VietnamZambia

DENMARK (cont’d)

NOTES










FINLAND

KEY FEATURES

Competent authority Finnish Tax Administration

APA provisions/Guidance

Informal guidelines are available on the Finnish Tax Administration’s website.


Unilateral, bilateral, and multilateral APAs are available. Taxpayers must rely on the MAP provisions in tax treaties of which Finland is signatory to secure a bilateral or multilateral APAs. Unilateral advance rulings on tax treatment are also available from the Tax Administration or Central Tax Board.

APA acceptance Criteria

There is no specific guidance on the acceptance criteria for bilateral or multilateral APAs.

Advance rulings are more likely to be given in circumstances where:

■■ resolving the issue is important for the application of tax law in similar cases;

■■ the ruling will provide consistency in the assessment of tax; and

■■ the Taxpayer submits a sufficiently detailed description of the case with some uncertainty of the tax treatment.

Key deadlines There is no specific guidance for bilateral or multilateral APAs. Applications for advance rulings must be filed before the end of the filing due date of the tax return (within four months after the financial year end).

APA term limits There is no specific guidance for bilateral or multilateral APAs. Advance rulings are granted for the period ending at the end of the tax year following the year the ruling was granted.

Filing fee There is no filing fee for bilateral or multilateral APA application. Fees for an advance rulings are payable upon receipt of the ruling and the amount will depend on the complexity of the ruling.


FINLAND (cont’d)

Rollback availability There is no specific guidance on rollback availability for bilateral or multilateral APAs. Advance rulings are only issued to cover future years.



Overview There is no specific guidance for bilateral or multilateral APAs. For advance rulings, the issues to be covered under the ruling may be discussed between the Taxpayer and the Tax Administration for the purpose of coming to a mutual agreement.





There is no specific guidance for what a bilateral or multilateral APA application should include.

The Taxpayer files the application, after which it is at the discretion of the Tax Administration to decide on the procedure to be taken. For advance rulings, the Taxpayer is required to provide a written application, including:

■■ a precise question to which the ruling should give an answer; and

■■ factual background and analysis of the question at hand.

Further information may be requested by the Tax Administration or Central Tax Board.

Language While there is no specific guidance prescribing the language in which documentation is required to be filed, in practice Finnish, Swedish, and English are acceptable.



General The Finnish Tax Administration follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


FINLAND (cont’d)



ArgentinaArmeniaAustraliaAustria AzerbaijanBarbados BelgiumBermudaBosnia and HerzegovinaBrazilBritish Virgin IslandsBulgariaBelarusCanadaCayman IslandsChinaCroatiaCyprus(IV)

Czech Republic

DenmarkEgyptEstoniaFranceGermanyGeorgiaGreeceGuernseyHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJapanKazakhstanKyrgyzstanLatvia


There is no specific guidance for bilateral or multilateral APAs. For advance rulings, there are no annual compliance requirements.

Renewal procedure There is no specific guidance for the renewal of bilateral or multilateral APAs. For advance rulings, an application for a renewal is treated as a new ruling request.

COUNTRY EXPERIENCE

Statistics In 2015 Finland granted 22 APAs.

MAP PROCEDURE

MAP provisions Article 89 of the Act on Tax Procedure.


FINLAND (cont’d)


LithuaniaLuxembourgMacedoniaMalaysiaMaltaMexicoMoldovaMontenegroMoroccoNetherlandsNew ZealandNorwayOmanPakistanPhilippinesPoland(IV)

Portugal(VI)

RomaniaRussiaSerbiaSingapore

SlovakiaSloveniaSouth AfricaSouth KoreaSpain(IV)g

Sri LankaSwedenSwitzerlandTajikistan(IV)

TanzaniaThailandTurkeyTurkmenistan(V)

UkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguay(IV)

UzbekistanVietnamZambia

NOTES










FRANCE

KEY FEATURES

Competent authority

Direction Générale des Finances Publiques (‘Tax authority’)


Article L80 B 7° of the Tax Procedure Code; and Administrative regulation BOI-SJ-RES-20-10-20120912.




Bilateral APAs may only be concluded with jurisdictions signatory to a double taxation treaty with France containing the MAP provisions. Unilateral APAs may be available where:

■ the relevant DTT does not provide for a MAP and bilateral APAs are accordingly not possible;

■ the transactions involve a significant number of countries;

■ for simple but frequent issues; and

■ for SMEs.

Key deadlines The APA procedure must be initiated by the Taxpayer at least six months before the beginning of the first financial year it is anticipated to cover.

APA term limits There is a five year maximum term for an APA and a minimum of three years.



APAs are available for future years only and no rollback is available.


FRANCE (cont’d)

Collateral issues Ongoing tax audits will not prevent the Taxpayer from initiating an APA for future financial years. An APA request will also not suspend any ongoing audits. If the Taxpayer and the Tax authority have reached a compromise in respect of a tax audit, or if after litigation a position has been taken by the courts, the Taxpayer may attempt to extend the corresponding solutions to future financial years through an APA.


Overview Prior to a formal APA application, there should be an informal meeting with the Tax authority to discuss:

■ the appropriateness of an APA in the circumstances;

■ the type of information required in the application;

■ the timeline of the application procedure; and

■ any other questions relating to the application.





Working meetings will take place during which the Taxpayer should present supporting documentation, including:■ comparables justifying the proposed TP method;■ the structure of the group to which the Taxpayer belongs;■ a description of the operations performed within the

group;■ financial and tax data relating to the three last years and

any other document justifying the proposed TP method; and

■ APAs obtained from other foreign CA(s).The Taxpayer may not refuse to provide information requested on the grounds that it is confidential.


FRANCE (cont’d)

Language The documentation should be submitted in French, unless otherwise agreed with the Tax authority during informal meetings.

SME provisions A simplified APA procedure is available for Taxpayers that meet the following criteria:

■ less than 250 employees and a turnover of less than EUR 50 million (approx. USD 53.4 million), or total assets worth less than EUR 43 million (approx. USD 45.9 million)

■ 25 per cent or more of the capital or voting rights is not held by one or more companies that do not meet the first condition

These thresholds relate to the financial year preceding the one in which the APA is requested.


General The Tax authority follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must lodge a report providing evidence of the proper application of the APA.

Renewal procedure

Applications for the renewal of APAs are required to be lodged six months before expiry. Negotiations on the renewal of an APA may be less onerous if there are no major changes to the terms of the existing APA.


FRANCE (cont’d)

COUNTRY EXPERIENCE

Statistics There were 28 APA application requests in 2015 and 18 completed applications. The average time of completion of the APA negotiations is 26.5 months.

MAP PROCEDURE

MAP provisions BOI-INT-DG-20-30-20120912: Common provisions – Conventional law – Mutual proceedings for the elimination of double taxation.




AlbaniaAlgeriaAndorra(IV)

ArgentinaArmeniaAustraliaAustriaAzerbaijanBahrainBangladeshBelgiumBeninBoliviaBotswanaBrazilBulgariaBurkina FasoCameroonCanada(I)

Central African RepublicChileChina(IV)

Congo CroatiaCyprusCzech RepublicEcuadorEgyptEstoniaEthiopia

FinlandGabonGeorgiaGermany(I)

GhanaGreeceGuineaHong Kong(IV)

HungaryIcelandIndiaIndonesiaIranIrelandIsraelItalyIvory CoastJamaicaJapanJordanKazakhstanKenyaKorea (Republic of)KuwaitLatviaLebanonLibyaLithuaniaLuxembourgMacedonia

FRANCE (cont’d)


FRANCE (cont’d)

NOTES










MadagascarMalawiMalaysiaMaliMaltaMauritaniaMauritiusMexicoMonacoMongoliaMoroccoNamibiaNetherlandsNew CaledoniaNew ZealandNigerNigeriaNorwayOmanPakistanPanama(IV)

PhilippinesPolandPortugalQatarRomania

Russia Saint MartinSaint Pierre and MiquelonSaudi ArabiaSenegalSingapore(IV)

SloveniaSouth AfricaSpainSri LankaSwedenSwitzerlandSyriaThailandTrinidad & TobagoTunisiaTurkeyUkraineUnited Arab EmiratesUnited Kingdom(I)

United States(I)

UzbekistanVenezuelaVietnamZambiaZimbabwe


GEORGIA

KEY FEATURES

Competent authority

Georgian Revenue Service


Articles 126-129.1 of the Georgian Tax Code (‘GTC’); and Chapter V of Decree 423 of the Finance Minister on the Approval of the Instructions on International Transfer Pricing, dated 18 December 2013 (‘Decree 423’).


Unilateral, bilateral, and multilateral APAs are available, however Decree 423 is only applicable to unilateral APAs. Procedures relating to bilateral and multilateral APAs may differ from those provided for under Decree 423, and the Revenue Service will provide guidance on these at the request of the Taxpayer at the pre-filing stage.


Georgian Taxpayers are eligible to apply for unilateral APAs provided that the covered transaction(s) exceed or are expected to exceed GEL 50 million (approx. USD 20.4 million).

Key deadlines An application for a unilateral APA must be made in advance of the proposed covered transaction(s) taking place.

APA term limits There is a three year maximum term for a unilateral APA.



Rollback to prior years is not available.



GEORGIA (cont’d)


Overview Taxpayers may make requests for pre-filing meetings in writing to the Head of the Revenue Service. The Revenue Service will respond to the request within 14 days of receipt to arrange the pre-filing meeting with the Taxpayer. A Taxpayer should be prepared to express its preliminary views on an appropriate pricing mechanism, and other information required for negotiations, including:

■■ details of the Taxpayer’s activities and the industry in which the covered transaction will take place;

■■ approximate values of the proposed covered transactions;

■■ the scope of the issues to be covered by the APA;

■■ the proposed covered period;

■■ ■an explanation of how the Taxpayer proposes to demonstrate that its proposal is in accordance with the market principle; and

■■ ■a thorough description of any other relevant facts and circumstances.

Taxpayers may use the pre-filing meetings for the following purposes:

■■ ■assess or mitigate any risk to confidential information provided in the APA application, or information provided to the Revenue Service that could be used against the Taxpayer in future audits should the APA application be rejected, or the potential undermining of previous transfer pricing practices adopted in prior years;

■■ ■assess the likelihood of an agreement being reached with the Revenue Service on the application of the market principle to the proposed covered transactions; and

■■ discuss opportunities for bilateral or multilateral APAs.


GEORGIA (cont’d)

Any views expressed by either party during the pre-filing meeting(s) will not be binding on either party. The Revenue Service will communicate with the Taxpayer within 14 days after the pre-filing meeting(s) the likelihood of an application being accepted.





Taxpayers are required to submit an application to the Revenue Service in writing, and include the following:

■■ details of the proposed covered transactions;

■■ ■details of the associated enterprises that are party to the proposed covered transaction(s) (including tax residence);

■■ ■a description of the Georgian Taxpayer entity’s business model and the industry relevant to the covered transaction(s);

■■ the proposed scope and covered period;

■■ ■the relevant details of the proposed covered transaction(s), including:

– the details of the proposed comparable uncontrolled transaction(s) (or criteria for selection of comparable controlled transaction(s) and proposed source of information), supported by comparability analysis in accordance with art 127(4) of the GTC and art 5 of Decree 423;

– the proposed comparability adjustment;

– the proposed TP method, selected in accordance with art 8 of Decree 423;

– where applicable, the proposed tested party selected in accordance with art 9 of Decree 423;


GEORGIA (cont’d)

■■ ■relevant financial data for the previous three years and calculations based on the application of the proposed TP method (if the outcome of these calculations differ from outcome in the tax returns of the same years, the Taxpayer should provide explanations for the variance);

■■ proposed critical assumptions to be included in the APA; and

■■ ■any other information that may be relevant to the Revenue Services’ assessment of the application.

Language The documentation should be submitted in Georgian or English. Where documents are submitted in English, the Revenue Service may request Georgian translations of specific documents.



General The Georgian Revenue Service follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


Taxpayers are required to complete and file an ‘Annual Compliance Report’ for each of the years covered by the APA. Taxpayers will be notified by the Revenue Service of the form and filing date for the Annual Compliance Report.

Renewal procedure

Applications for the renewal of APAs are required to be lodged six months before expiry. An APA renewal request will go through the same stages as the initial APA request. The Revenue Service will renew an arrangement if the following terms are met:

■■ ■there have been no material changes in the facts and circumstances and relevant critical assumptions are still applicable;

■■ ■the Taxpayer entity has complied with the requirements of the existing APA; and

■■ ■the Revenue Service considers it appropriate to renew the arrangement.


GEORGIA (cont’d)

COUNTRY EXPERIENCE

Statistics There are no statistics publicly available.

MAP PROCEDURE

MAP provisions Article 38 of Decree 423



Armenia AustriaAzerbaijan Bahrain(IV)

Belarus(IV)

Belgium(II)

Bulgaria ChinaCroatia(IV)

Cyprus(IV)

Czech RepublicDenmark Egypt(IV)

Estonia FinlandFrance Germany(IV)

GreeceHungary(IV)

Iceland(IV)

India(IV) Iran Ireland Israel ItalyJapan Kazakhstan

Korea (Republic of)(IV) Kuwait(IV

Latvia Liechtenstein(IV)

Lithuania Luxemburg Malta Netherlands(I)

Norway(IV)

Poland Portugal(IV)

Qatar Romania San Marino(IV)

SerbiaSingapore Slovak Republic(IV)

Slovenia(IV)

Spain Sweden(IV)

SwitzerlandTurkey Turkmenistan Ukraine United Arab Emirates United Kingdom United StatesUzbekistan (IV)V)


NOTES









GEORGIA (cont’d)


GERMANY

KEY FEATURES

Competent authority

Federal Central Tax Office (‘Tax authority’)


The Ministry of Finance Ordinance of 5 October 2006 serves as guidance for filing an APA (BMF, IV B 4-S 1341-38/06, 5 October 2006, BStBl I 2006 at 594).


Bilateral and multilateral APAs are available. Unilateral binding statements from the Tax authority can be obtained in the form of advance rulings, but are applicable only in cases questioning the interpretation of law. For technical matters, such as the acceptance of specific TP methods, advance rulings are not available.


According to the Ministerial guidance, discretionary consideration must be paid to the Taxpayer’s and authorities’ interests, including:

■■ ■the compliance of the APA request with German transfer pricing principles;

■■ ■the likelihood of implementation in any relevant foreign jurisdiction(s);

■■ ■the APA practices in the relevant foreign jurisdiction(s);

■■ ■any foreseeable difficulties or doubts with respect to the interpretation of the applicable tax treaty;

■■ ■the seriousness of the issues to be assessed, hypothetical transactions, any evidence that the Tax authority’s position is being put to the test, and whether tax avoidance is an evident motive for the request; and

■■ ■any disputes in an ongoing tax audit which might indirectly be solved by reaching an APA.

Key deadlines The APA will generally commence from the beginning of the fiscal year in which the formal request is filed. However earlier commencement dates are allowed if the APA is filed before a tax return has been submitted for an earlier fiscal year and the statutory deadline for submission has not yet expired. Earlier commencement dates may be negotiated with the consent of the other relevant foreign CA(s).


GERMANY (cont’d)

APA term limits The Tax authority suggests a three year minimum and a five year maximum term for an APA.

Filing fee APA application fee■ EUR 20,000 (approx. USD 21,350)

APA renewals■ EUR 15,000 (approx. USD 16,000)

Modification of application■ EUR 10,000 (approx. USD 10,700)

There is a 50 per cent reduction in fees for small Taxpayers (Taxpayers with intercompany tangible goods transactions below EUR 5 million (approx. USD 5.3 million) and other intercompany transactions below EUR 500,000 (approx. USD 530,000)).


Rollback is available where the foreign CA(s) involved consents, and the Taxpayer can provide proof that the circumstances brought about in the relevant preceding years match the circumstances during the years covered by the APA. If a rollback is desired, the Taxpayer must provide all information requested within the APA process for the preceding years intended to be covered.

Collateral issues Any administrative or tax issues that are relevant to and may affect the outcome of the APA should be addressed and resolved at the pre-filing stage with the Tax authority.


GERMANY (cont’d)


Overview Taxpayers should request from the Tax authority a pre-filing meeting to discuss the procedure, agree on the content of the APA request and documents that are required. The relevant Tax authority of the Land (State) and all relevant foreign CA(s) must be involved in this discussion. Practical experience shows that Taxpayers are required to:

■■ ■explain why an APA is suitable in the Taxpayer’s circumstances;

■■ ■outline the proposed TP method;

■■ ■introduce all relevant parties of the proposed APA;

■■ ■discuss with the Tax authority the documentation required for formal filing;

■■ ■agree with the Tax authority on a filing date and timetable; and

■■ ■gage whether any of the relevant foreign CA(s) foresee major roadblocks that could prevent the APA application from reaching successful completion.

The Taxpayer may also discuss the Tax authority’s estimation of the prospects of an agreement with foreign CA(s) being reached in the APA procedure. A joint, non-binding estimate should be made on how long it will take to conclude the APA.


Pre-filing is available on an anonymous basis. Any information provided to the Taxpayer that is non-procedural will not be binding, and no preparatory work will be done by the Tax authority beforehand.


GERMANY (cont’d)



Taxpayers must file the formal APA application with the Tax authority, enclosing four copies of each document required. APA applications must include:■■ ■the scope of application with regard to

(i) business transactions covered by the APA; and (ii) term of the APA

■■ ■any foreign jurisdiction(s) party to the APA;■■ ■TP method, justification of the applied method and

determination of the transfer price;■■ documents as agreed in the pre-filing stage;■■ ■special requirements for cost sharing agreements; and■■ ■critical assumptions.

The Tax authority may ask for further supporting documentation during the APA process. Practical experience shows that Taxpayer regularly needs to provide the following information:■■ ■a description of the shareholding/group structure;■■ ■a description of organisational and operational group structure;■■ ■a description of the industry in which the relevant parties

operate;■■ ■presentation of business relationships with related parties;■■ ■a description and explanation of the functions and risks of the

parties covered by the APA;■■ ■a description of the value chain and contribution of the parties

covered by the APA;■■ ■a description of the assets (particularly intangible assets) that

are relevant for the business transaction covered by the APA;■■ ■a description of market and competition circumstances; and■■ ■a description of all open tax questions that are related to the

business transaction in Germany and any other jurisdiction(s) which are in the scope of the APA.


GERMANY (cont’d)

The application and position of the applicant will be scrutinised, coordinating closely with local tax auditors and negotiating with the relevant foreign CA(s). The Tax authority will reach an agreement with the relevant foreign CA(s) and formally ask approval from the Taxpayer. Once approved, a ruling will be granted. Until the APA is concluded with legal effect, the request may be altered at any time. However substantial alterations will be regarded as an entirely new request.

Language The documentation may be submitted in German or in English, however if provided in English, translations must be made available upon request.

SME provisions Simplified APA procedures are available on request for applicants that meet the small Taxpayer criteria as set out above. This will be provided so long as no threat is posed to the objective of the APA and the agreement with the relevant foreign CA(s).




An annual report (‘Compliance Report’) must be submitted to the Tax authority and relevant foreign CA(s) demonstrating that the critical assumptions have been satisfied, and including any deviations or adjustments made. The Compliance Report must be delivered by the earlier of the following:

■■ the same time as delivered to the foreign CA(s); or

■■ filed with the tax return for the relevant assessment period.

Renewal procedure

An APA may be renewed if there is consent from the relevant foreign CA(s), the renewal request is duly filed, and it can be proved that the underlying facts in the future will continue to match those on which the existing APA is based. An abbreviated procedure without submission of the documents required in an initial request is possible in such circumstances.


GERMANY (cont’d)

COUNTRY EXPERIENCE

Statistics There were 61 APA application requests in 2015 and nine completed applications. The average completion time was 37 months for bilateral and multilateral APAs. Formal guidelines for APA applications were introduced in 2006.

MAP PROCEDURE

MAP provisions The Information Leaflet for competent authority and arbitration procedures, 13 July 2006, BStBl I 2006.



AlbaniaAlgeriaAndorraAnguillaAntigua and Barbuda(IV)

ArgentinaAustralia(I), (IV)

Austria(I), (VII)

AzerbaijanBahamas BangladeshBelarusBelgiumBermuda(IV)

Bolivia Bosnia-HerzegovinaBritish Virgin Islands

BulgariaCanadaCayman IslandsChinaCook Islands(IV)

Costa Rica(IV)

CroatiaCyprus Czech RepublicDenmark EcuadorEgypt Estonia Finland France(I)

Georgia(IV)

Ghana


GERMANY (cont’d)


Gibraltar Greece Grenada(IV)

Guernsey HungaryIcelandIndiaIndonesiaIranIreland(IV)

Isle of Man IsraelItalyIvory Coast Jamaica Japan(I), (IV)

JerseyKazakhstan Kenya Korea (Republic of) Kosovo Kuwait Kyrgyzstan Latvia LiberiaLiechtenstein(I), (IV)

Lithuania Luxembourg(I), (IV)

Macedonia Malaysia Malta

Mauritius Mexico Moldova Monaco Mongolia Montenegro Morocco Namibia Netherlands(I)

New Zealand Norway Pakistan Philippines(IV)

Poland Portugal Romania Russia Saint Kitts(IV)

Saint Lucia(IV)

Saint Vincent and the GrenadinesSan Marino Saudi Arabia Serbia Slovakia Slovenia Singapore Spain Sri Lanka South Africa Sweden(VIII)

Switzerland(I)


GERMANY (cont’d)


SyriaTaipei(III), (IV)

TajikistanThailand Trinidad and Tobago Tunisia Turkey Turks and Caicos Islands Ukraine

United Arab Emirates United Kingdom(I)

United States(I)

Uruguay Uzbekistan Venezuela VietnamZambia Zimbabwe

NOTES










HONG KONG

KEY FEATURES

Competent authority

Inland Revenue Department (‘IRD’)


Departmental Interpretation and Practice Notes No. 48.




Any resident enterprise or non-resident enterprise with a PE in Hong Kong, chargeable to profits tax and having controlled transactions, may apply for an APA. For each year of the proposed APA, purchase and sales transactions must be greater than HKD 80 million (approx. USD 10.3 million); service transactions must be greater than HKD 40 million (approx. USD 5.15 million); and intangible transactions must be greater than HKD 20 million (approx. USD 2.6 million).

Unilateral APAs will only be considered where:■■ ■the foreign CA(s) in a bilateral or multilateral APA process do

not wish to participate;■■ ■the IRD is unable to reach agreement with the foreign CA(s);

and■■ ■a country not signatory to a DTT with Hong Kong is prepared

to give a unilateral APA regarding transactions integrally linked to the controlled transactions covered by the proposed APA.

Key deadlines Pre-filing meetings must commence six months prior to the commencement date of the proposed APA.

APA term limits An APA will apply for three to five years.



A decision on whether rollback is available for years prior to an APA depends on the TP risks involved. Taxpayers that seek rollbacks should consider the following:■■ ■the IRD will not give an undertaking that years prior to an APA

will not be audited;■■ ■an APA does not have retroactive application;■■ ■there may be situations where the principles developed in

concluding an APA might provide a basis for resolving issues for prior years;


HONG KONG (cont’d)

■■ ■prior year adjustments resulting from an APA request will be treated as though the enterprise has made a voluntary disclosure provided compliance activity has not commenced or been notified;

■■ ■where an audit has not commenced or the Taxpayer has not been notified of an audit, any additional tax will be calculated on the basis of being a voluntary disclosure; and

■■ ■where an audit has commenced, the normal penalty provisions will apply to any adjustments made to prior years under audit.

Collateral issues Collateral issues such as legal, tax treaty, and tax avoidance issues should be disclosed at the pre-filing stage and will be addressed simultaneously with an APA and may have to be resolved using a separate advance ruling procedure.


Overview The pre-filing meeting typically involves:

■■ ■identification of the nature and scope of the APA process;

■■ ■identification of the specific matters to be agreed; and

■■ ■a detailed discussion of the APA process.

The Taxpayer is also required to submit a draft APA case plan and an APA proposal one month before the pre-filing meeting that describes the specific issues for which certainty is sought in relation to the controlled transactions and any collateral issues, together with supporting documentation outlining the scope of the APA and proposed TP methods.





The formal APA application must be submitted before the agreed deadline and include:

■■ a functional analysis and industry analysis;

■■ details of the proposed TP method;

■■ ■the terms and conditions governing the application of the TP method including critical assumptions;



■■ ■data showing that the TP method will produce an arm’s length result; and

■■ ■information and documentation as agreed in the pre-filing meeting.

Language The documentation should be submitted in English or Chinese. All documents submitted in a language other than those two must be accompanied by an English translation.



General The IRD follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


The Taxpayer is required to prepare and submit an Annual Compliance Report for each year of the APA, demonstrating compliance with the terms of the APA. The years covered in an APA will continue to be subject to an audit.

Renewal procedure

Applications for the renewal of APAs are required to be lodged six months before expiry. An APA renewal request will go through the same stages as the initial APA request, unless the Taxpayer is eligible for an extension. An APA extension is available where:■■ the terms of the previous APA have been complied with;■■ ■there are no material changes relevant to the controlled

transactions or terms of the existing APA;■■ ■it is unlikely there will be any material changes over the period

of the extended APA;■■ ■it is clear the arm’s length benchmarks used remain valid over

the period of the extension;■■ ■the covered controlled transactions are consistent with the

previous APA;■■ ■there are no material changes to the functions, assets, or risks;■■ ■the TP method used in the previous APA remains the most

appropriate; and■■ ■the critical assumptions are consistent with the

previous APA.



COUNTRY EXPERIENCE

Statistics The IRD has had an APA program since 2012.

MAP PROCEDURE

MAP provisions Paragraph 78-84 and Appendix 7 of the DIPN No. 48.



AustriaBelgium BruneiCanada(I), (IV)

China(IV)

Czech Republic(IV)

FranceGuernsey(I), (IV)

HungaryIndonesia(IV)

IrelandItaly(I), (IV)

Japan(I)

Jersey(I), (IV)

Korea (Republic of)(IV)

Kuwait(IV)

Liechtenstein(I)

Luxembourg(I)

Malaysia(IV)

Malta(IV)

Mexico(IV)

Netherlands(I)

New ZealandPortugal(IV), (VI)

Qatar(IV)

Romania(IV)

Russia(IV)

South Africa(IV)

Spain(IV)

SwedenSwitzerland(I), (IV)

ThailandUnited Arab Emirates(IV)

United KingdomVietnam

NOTESI denotes treaties with MAP arbitration provisions.









HUNGARY

KEY FEATURES

Competent authority

Hungarian Tax Authority (National Tax and Customs Administration) (‘HTA’)


Section 132/B-C of the Act XCII of 2003 on the Rules of Taxation;■Decree of the Ministry of Finance (Decree 38/2006) on APAs; and

Decree of the Ministry of Finance (Decree 22/2009) on Transfer pricing documentation requirements.


Unilateral, bilateral, and multilateral APAs are available. Taxpayers must rely on the MAP provisions in DTTs of which Hungary is signatory to secure a bilateral or multilateral APA.


Bilateral and multilateral APAs may only be concluded with jurisdictions signatory to DTTs with Hungary.

Key deadlines The earliest date to be covered under an APA is the date of submission of the APA request. APA requests must be submitted before the conclusion of the relevant transaction(s) proposed to be covered under the APA, unless:

■■ ■the relevant transaction(s) are performed continuously for a minimum term of six months; and

■■ ■at least one performance takes place every other month; or

■■ ■one of the parties maintain specific credit facilities in favour of the other party during the contract; or

■■ ■there is a requirement of continuous availability of the transaction(s) for either of the parties.

The HTA may request the Taxpayer to provide additional information that is necessary for assessing the APA, or for clarifying new facts, data, or circumstances that may emerge in the course of the procedure. The HTA must issue an APA within 120 days after the submission of the request. This period can be extended twice, each time for an additional 60 days. The periods of communication with any relevant foreign CA(s) and the verification of information with these authority are not included in the above time frame.


HUNGARY (cont’d)

APA term limits The APA is valid for a pre-determined period of three to five years. Upon request, this period can be extended once for three years.

Filing fee Depending on the type of APA and the transaction value, filing fees vary as follows: Unilateral APAs (traditional methods) HUF 500,000-HUF 5 million (approx. USD 1,720-17,000)

Unilateral APAs (non-traditional method) HUF 2 million-HUF 7 million (approx. USD 7,000-24,400)

Bilateral APAs HUF 3 million-HUF 8 million (approx. USD 10,460-28,000)

Multilateral APAs HUF 5 million-HUF 10 million (approx. USD 17,500-34,900)

The basis of the filing fee is one per cent of the arm’s length price or one per cent of the median of the price range determined. If the amount so determined exceeds the minimum of the above fee range, the difference must be paid by the Taxpayer upon request of the HTA up to the date of issuing the APA.


There is no rollback availability.



Overview The Taxpayer may request a pre-filing meeting with the HTA to discuss the conditions under which to conduct proceedings, negotiate a timetable for completion and the documentation necessary for filing the APA request.




HUNGARY (cont’d)



Three copies of the APA request must be submitted to the Directorate for Large Taxpayers of the HTA and the Taxpayer must be represented by a tax advisor, tax expert or lawyer. In addition, the APA request should be countersigned by a tax advisor, tax expert or lawyer. The APA request must contain the following:

■■ ■APA request form (available on the HTA website);

■■ ■name, tax number, and address of the Taxpayer and related entities;

■■ ■proof of payment of the filing fee;

■■ ■signed authorisation for the Taxpayer’s representative;

■■ ■proxy for the tax advisor, expert, or lawyer for submission of the APA request and subsequent representation;

■■ ■notarised (and apostilled if required) company registry excerpt of the Taxpayer (this must be no older than 30 days);

■■ ■relevant transaction(s) to be covered under the APA;

■■ ■analysis of the relevant market;

■■ ■TP method applied for establishing the arm’s length price;

■■ ■reasons for selecting the method applied;

■■ ■description of comparable services and goods transactions;

■■ ■factors affecting the arm’s length price, margin or profit, and the extent of any necessary adjustments;

■■ ■the arm’s length price, margin, or range;

■■ ■information about tax rulings or official and court proceedings in progress relating to the relevant transaction(s);

■■ ■preparation and amendment date of the documentation; and

■■ ■if consolidated transfer pricing documentation is prepared (single documentation covering several similar or strongly interrelated transactions), reasons for consolidation must be provided.


HUNGARY (cont’d)

Language The documentation should be submitted in Hungarian, French, German, or English.

SME provisions APAs are not available to Taxpayers exempt from the obligation to prepare transfer pricing documentation as per the transfer pricing documentation provisions.


General The HTA follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


There is no monitoring of compliance with APAs, or post-agreement annual filing procedures.

Renewal procedure

Applications for the renewal of APAs are required to be lodged six months before expiry.

COUNTRY EXPERIENCE

Statistics There were 24 APA application requests in 2015 and 11 completed applications. The HTA has had an APA program since 2007.

MAP PROCEDURE



HUNGARY (cont’d)



Albania

Armenia

Australia

Austria

Azerbaijan

Bahrain

Belarus

Belgium

Bosnia-Herzegovina

Brazil

Bulgaria

Canada

China

Croatia

Cyprus

Czech Republic

Denmark(IV)

Egypt

Estonia

Finland

France

Georgia(IV)

Germany

Greece

Hong Kong

Iceland

India

Indonesia

Ireland

Israel

Italy

Japan

Kazakhstan

Korea (Republic of)

Kosovo

Kuwait

Latvia

Liechtenstein(IV)

Lithuania

Luxembourg

Macedonia

Malaysia

Malta

Mexico(IV)

Moldova

Mongolia

Montenegro

Morocco

Netherlands

Norway

Pakistan

Philippines

Poland

Portugal(IV)

Qatar(IV)

Romania


HUNGARY (cont’d)


Russia

San Marino

Saudi Arabia(IV)

Serbia

Singapore

Slovakia

Slovenia

South Africa

Spain

Sweden

Switzerland

Taipei(III)

Thailand

Tunisia

Turkey

Ukraine

United Arab Emirates(IV)

United Kingdom

United States

Uruguay

Uzbekistan

Vietnam

NOTES










INDIA

KEY FEATURES

Competent authority

Central Board of Direct Taxes.


Section 92 of the Finance Act 2012;

Circular No. 10 of 2015, dated 10 June 2015; and

FAQs on APAs available on the Income Tax Department website.




Any Taxpayer who has entered into an international transaction or is contemplating to enter into an international transaction is eligible to apply for an APA.

Key deadlines Taxpayers must file the APA application before the first day of the previous year relevant to the first assessment year for which the application is made, in respect of transactions which are of a continuing nature from dealings that are already occurring, or before undertaking the transaction in respect of remaining transactions. Compliance audits of the APA will also be carried out for each of the year covered.

APA term limits No specific guidance.

Filing fee The fees payable are based on the amount of the international transaction entered into or proposed to be undertaken:

Under INR 1 billion (approx. USD 15.47 million) – INR 1 million (approx. USD 15,470)

Between INR 1 billion-INR 2 billion (approx. USD 30.93 million) – INR 1.5 million (approx. USD 23,200)

Exceeding 2 billion – INR 2 million (approx. USD 30,900)


Rollback is available to Taxpayers that have applied for an APA for a period of four consecutive previous years.



INDIA (cont’d)


OverviewPre-filing meetings with the Central Board of Direct Taxes is optional. To request a pre-filing meeting the Taxpayer must submit three copies of Form No. 3 CEC (available on the Income Tax Department’s website) and include the following details:

■■ ■name, account number, address, location of business, and contact number of the Taxpayer;

■■ ■details of the Taxpayer’s representative (if applicable);

■■ ■organisation structure of the Taxpayer’s group and industry in which it operates;

■■ ■names of all associated entities relevant to the transaction to be covered;

■■ ■name of the jurisdiction(s) in which the associated entity is located;

■■ ■business model and operations in the prior three years;

■■ ■functional and risk profile of the applicant and associated entities;

■■ ■details of the transaction(s) proposed to be covered;

■■ ■value of such international transactions covered under transfer pricing audits in the previous three years;

■■ ■details of all other international transactions not proposed to be covered in the APA;

■■ ■type of APA proposed;

■■ ■number of years the APA will cover;

■■ ■proposed TP method to be used with supporting documentation;

■■ ■identification of third party comparables;

■■ ■details of arm’s length price or profit level indicator;

■■ ■critical assumptions;

■■ ■details of any issues, requests, or settlements with the Central Board of Direct Taxes; and


INDIA (cont’d)

■■ ■history of transfer pricing audits, assessments and present status of appeals;

■The meeting shall, among other things:

■■ ■determine the scope of the agreement;

■■ ■identify transfer pricing issues;

■■ ■determine the suitability of international transaction for the agreement; and

■■ ■discuss broad terms of the agreement.

The pre-filing consultation shall not bind the Board or the person to enter into an agreement or initiate the agreement process, and shall not be deemed to mean that the person has applied for entering into an agreement.





The Taxpayer must submit an APA application with Form No. 3 CED (available on the Income Tax Department’s website) along with the requisite filing fee. The application must include:■■ ■name, account number, address, location of business and

contact number of the Taxpayer;■■ ■details of the Taxpayer’s representative (if applicable);■■ ■whether pre-filing discussions were sought and the details of

the same;■■ ■name(s) of the associated entities with whom the APA is

requested;■■ ■jurisdiction(s) in which the associated entities are located;■■ ■type of APA sought;■■ ■evidence of payment of the filing fee;■■ APA period proposed;■■ ■details of the international transactions proposed to be covered

in the APA;■■ ■proposed TP method;


INDIA (cont’d)

■■ ■proposed terms and conditions;■■ ■critical assumptions;■■ ■history and background of the Taxpayer and associated entities;■■ ■general description of business and products/services;■■ ■organisational structure;■■ ■identification of all other transaction flows of the multinational

enterprise that may have an impact on the pricing of the covered transactions;

■■ ■functional currency for each entity and currency used for the transactions to be covered;

■■ ■accounting and costing system, policies, procedures, and practices, including any significant financial and tax accounting differences that may affect the transfer pricing method(s);

■■ ■functional analysis of the Taxpayer and all relevant entities;■■ ■financial and operating information including corporate annual

reports, and agreements;■■ ■industry and market analyses;■■ ■transfer pricing background;■■ ■transfer pricing method analysis; and■■ ■impact of proposed transfer pricing method.




General The Central Board of Direct Taxes follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


Taxpayers must furnish four copies of an annual compliance report to the Director General of Income Tax (International Taxation) for each year covered in the agreement. The report must be received the later of either 30 days prior to the due date of filing the income tax return for that year, or within 90 days of entering into an agreement.

Renewal procedure

An APA renewal application will go through the same stages as the initial APA application.


INDIA (cont’d)



Albania(IV)

ArmeniaAustraliaAustriaBangladeshBelarusBelgiumBhutan(IV)

BotswanaBrazilBulgariaCanadaChinaColombia(IV)

Croatia(IV)

Cyprus(IV)

Czech RepublicDenmarkEgyptEstonia(IV)

Ethiopia(IV)

Fiji(IV)

FinlandFrance

Georgia(IV)

GermanyGreeceHungaryIcelandIndonesiaIrelandIsraelItalyJapan(IV)

JordanKazakhstanKenyaKorea (Republic of)(IV)

KuwaitKyrgyzstanLatvia(IV)

LibyaLithuania(IV)

LuxembourgMacedonia(IV)

Malaysia(IV)

Malta(IV)

COUNTRY EXPERIENCE

Statistics There were 99 active APA applications during income year 2016 – 2017 and 88 completed applications (as of 31 March 2017). The average completion time was 29 months. The Central Board of Direct Taxes has had an APA program since 2012.

MAP PROCEDURE

MAP provisions Rules 44G and 44H of guidance issued by the Indian government on 6 February 2003.


INDIA (cont’d)


MauritiusMexicoMongoliaMontenegroMoroccoMozambiqueMyanmarNamibiaNepal(IV)

Netherlands New ZealandNorway(IV)

OmanPhilippinesPolandPortugalQatarRomania(IV)

RussiaSaudi ArabiaSerbiaSingaporeSlovak Republic(IV)

SloveniaSouth AfricaSpainSri Lanka(IV)

SudanSwedenSwitzerlandSyriaTajikistanTanzania(IV)

Thailand(IV)

Trinidad & TobagoTurkeyTurkmenistanUgandaUkraineUnited Arab EmiratesUnited KingdomUnited States Uruguay(IV)

UzbekistanVietnamZambia

NOTES










KEY FEATURES

Competent authority

The Director General of Taxation


Article 18(3a) of the Income Tax Law;

Government Regulation 74 of 2011;

Ministry of Finance Regulation 7 of 2015; and

Director General of Taxation Regulation PER-69 of 2010.





Key deadlines Requests for a preliminary meeting must be submitted at least six months prior to the start of the tax year that is intended to be covered by the APA; and the formal request for an APA and its supporting documentation must be received by the Director General of Taxation at the latest by the end of the financial year preceding the start of the year that would be covered by the proposed APA.

APA term limits There is a three year maximum term for unilateral APAs and four year maximum term for bilateral and multilateral APAs.




Collateral issues Taxpayers will not be granted an APA if any of the following apply:■■ the Taxpayer has been the subject of audits in previous fiscal

years;

■■ the Taxpayer has outstanding appeals or objections relevant to the covered transactions of the proposed APA; and

■■ there are indications that the Taxpayer engaged or is engaging in tax fraud.

INDONESIA



Overview Taxpayers must request a pre-filing meeting with the Director General of Taxation to discuss:

■■ the reasons for seeking an APA;

■■ the scope of APA proposed by the Taxpayer;

■■ the proposed TP method;

■■ any other existing APAs involving foreign CA(s);

■■ the Taxpayer’s documentation and analysis;

■■ a time frame for the formation of the APA; and

■■ any other matters relating to the formation and implementation of the APA.

■■ Upon request of the pre-filing meeting the Taxpayer must disclose:

■■ a description of the Taxpayer’s reasons applying for APA;

■■ the Taxpayer’s articles of association;

■■ a full overview of the Taxpayer’s business plan and its business activities;

■■ the Taxpayer’s corporate structure, including group, ownership and organisational structures;

■■ the shareholders of the Taxpayer and the nature of their related-party transactions;

■■ other related parties and the nature of their related-party transactions;

■■ the transactions covered under the proposed APA; and

■■ the TP method and relevant documentation.

Anonymous pre-filing availability Anonymous pre-filing is not available.

INDONESIA (cont’d)




A formal APA request form (‘Form APA-2 ‘)must addressed to the DGT be completed with:

■■ ■a detailed summary of the preliminary meeting;

■■ TP method proposed by the Taxpayer and documentation that supporting the selection of this method;

■■ the conditions that are used as the basis for determination of the TP method;

■■ explanation and documentation that the proposed TP method is consistent with the arm’s length principle; and

■■ critical assumptions, taking into account:

■■ amendments to tax laws and regulations;

■■ changes in tariff and import duties;

■■ amendmenst to industry regulations;

■■ force majeure events;

■■ new competitors who have significant impact on market price structure;

■■ new government regulations that have significant impact on the Taxpayer’s business activities;

■■ economic conditions that have significant impact on sales volume, production units or market share;

■■ changes of Taxpayer’s business activities such as company restructuring; and

■■ significant changes in relevant foreign exchanges rates.

The formal application process will also include meetings with the Director General of Taxation to discuss the scope of the transaction covered in the APA; comparability analysis through the selection and determination of comparable data; the appropriate selection of a TP method; and additional requirements as dictated by any foreign CA(s) relevant to the APA. If the request is successful, the Director General of Taxation will send the Taxpayer a formal APA for signing.



Language The documentation must be submitted in Indonesian.



General While the Director General of Taxation generally follows a standard pre-filing, application and monitoringprocess, the key timing requests and deadlines, as well as the level of participation in negotiations the Taxpayer is expected to have after formally submitting the APA request should be noted.


Taxpayers must submit an Annual Compliance Report to the head of the applicable local tax service office within 4 months after the end of the tax year. The annual report must contain:■■ information documenting compliance of the applicable

transactions under the APA;

■■ an explanation of the accuracy and consistency of the advance pricing determination method; and

■■ an explanation of the accuracy of the critical assumptions used in the implementation of the advance pricing determination.

Renewal procedure

The renewal procedures are the same as for the initial APA. Application for renewal can be made in the last tax year of the APA’s validity period.

COUNTRY EXPERIENCE

Statistics Statistics on APAs are not publicly available.

MAP PROCEDURE

MAP provisions Director General of Taxation Regulation PER-48 of 2010.





Algeria

Armenia(IV)

Australia

Austria

Bangladesh

Belgium

Bermuda

Brunei

Bulgaria

Canada

China

Croatia

Czech Republic

Denmark

Egypt

Finland

France

Germany

Hong Kong(IV)

Hungary

India(IV)

Iran

Italy

Japan

Jersey

Jordan

Korea (Republic of)

Kuwait

Laos(IV)

Luxembourg

Malaysia

Mexico(I)

Mongolia

Morocco(IV)

Netherlands

New Zealand

Norway

Pakistan

Papua New Guinea(IV)

Philippines

Poland

Portugal

Qatar

Romania

Russia

Saudi Arabia

Seychelles

Singapore

Slovak Republic

South Africa

Spain

Sri Lanka

Sudan

Suriname(IV)

Sweden

Switzerland




Syria

Thailand

Tunisia

Turkey

Ukraine

United Arab Emirates

United Kingdom

United States

Uzbekistan

Venezuela

Vietnam

Zimbabwe

NOTES











IRELAND

KEY FEATURES

Competent authority

Transfer Pricing Branch of the Revenue (‘Revenue’)


Bilateral Advance Pricing Agreement Guidelines 2016, available on the Revenue’s website.


Bilateral and multilateral APAs are available.


Taxpayers in Ireland and PEs in Ireland of non-resident Taxpayers located in jurisdictions with which Ireland has an effective DTT, are eligible to apply for an APA. APAs may be sought for transfer pricing issues, including the attribution of profits to a PE.

Factors which are more likely to result in a request for an APA being accepted include:

■ significant doubt over the TP method;

■ a high likelihood of double taxation arising if no APA is in place;

■ the Taxpayer is applying a bespoke TP method;

■ the application of the TP method is complex and/or requires complex calculations;

■ reliable comparables are not readily available and/or significant and complex adjustments are required; and

■ the transactions which are to be covered by the APA have already been entered into or are about to be entered into and are not expected to change throughout the APA period.

If a Taxpayer is involved in a case with the Tax Appeals Commission or in court proceedings in respect of a matter which is related to the transactions covered by the proposed APA, the APA application may be rejected. Any such involvement should be disclosed at the pre-filing meeting.

Key deadlines Taxpayers must submit an APA application before the beginning of the first accounting period to be covered by the APA.


IRELAND (cont’d)

APA term limits There is a five year maximum term for an APA (excluding rollback years).



Rollbacks are available subject to the applicable time limits of the jurisdictions involved in the APA; the relevant facts and circumstances; and whether there are any ongoing audits, examinations, appeals, or judicial proceedings in respect of the periods or transactions which are to be covered by the rollback.

Collateral issues No specific guidance, however the issue of whether there is PE or no PE must be dealt with prior to filing a formal application.


Overview The Taxpayer is encouraged to contact the Revenue to discuss the APA application in a pre-filing meeting on an informal basis. The meeting will include a discussion of the following:

■ a high level overview of the business and corporate structure of the Taxpayer and MNE;

■ the parties to the APA and the jurisdictions involved;

■ the nature of the transactions to be covered under the APA, years to be covered and the amounts involved;

■ the proposed TP method (if decided upon);

■ a high level overview of any transfer pricing audits related to the transaction subject of the APA discussions; and

■ any other information which the Taxpayer considers important and relevant to the APA application.


Anonymous pre-filing is available, however the Revenue strongly recommends that pre-filing meetings are conducted on a named basis.


IRELAND (cont’d)



The Taxpayer must submit three hard copies of the APA application to the Director of the Transfer Pricing Branch of the Revenue. The application must include:

■ an executive summary;

■ details on the company background;

■ an industry analysis;

■ an economic analysis (covering the proposed TP method, search for comparables and any adjustments); and

■ details of any related audits.

The Revenue will consult with the foreign CA(s) involved prior to acceptance into the program. Once satisfied that the transaction is suitable for an APA, the Revenue will issue an acceptance letter to the Taxpayer. Original documents should not be submitted to the Revenue, as all documentation will be retained. The Revenue may request a site visit and interviews with appropriate personnel from the Taxpayer’s organisation during the processing of the application.

Language The documentation should be submitted in Irish or English.



General The Revenue follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


IRELAND (cont’d)


Taxpayers must file an Annual Report by the due date for filing of their annual corporate income tax return. The Annual Report must include the following:

■ a statement of compliance with the APA, including critical assumptions;

■ a statement of whether critical assumptions remain valid throughout the period of the APA;

■ financial data for the period comparing the actual results for the covered transaction with the targeted arm’s length result agreed in the APA;

■ details of any compensating adjustments made to stay within the targeted arm’s length range agreed in the APA;

■ details of any pending requests to modify, renew, or cancel the APA; and

■ identification and correction of any incorrect or incomplete information which has been submitted to the Revenue which comes to the Taxpayer’s attention prior to submission of the Annual Report which may have a material impact on the APA.

Additional information may be requested, and the Taxpayer must notify the Revenue if the foreign CA(s) request additional information.

Renewal procedure

The Taxpayer is encouraged to make early contact with the Revenue to request the renewal of an APA. The Taxpayer may be required to outline any changes to the material facts and circumstances and critical assumptions from the original APA, and address the continued appropriateness of the TP method employed. Where transfer pricing issues differ significantly from the original APA, the Revenue may require the Taxpayer to submit an application for a new APA.




Albania

Armenia

Australia

Austria

Bahrain

Belarus

Belgium

Bosnia-Herzegovina

Botswana(IV)

Bulgaria

Canada(I)

Chile

China

Croatia

Cyprus

Czech Republic

Denmark

Egypt

Estonia(IV)

Finland

France

Georgia

Germany(IV)

Greece

Hong Kong

Hungary

Iceland

India

Israel(I)

Italy

Japan

Korea (Republic of)

IRELAND (cont’d)

COUNTRY EXPERIENCE

Statistics There were four APA application requests in 2015 and two completed applications. The average completion time was 33 months for bilateral and multilateral APAs. The Revenue has had an APA program since 2016, however APA applications were processed by the Revenue prior the establishment of the formal program.

MAP PROCEDURE

MAP provisions Guidance ‘International Tax: Mutual Agreement Procedures’ available on the Revenue’s website.


IRELAND (cont’d)


Kuwait

Latvia

Lithuania

Luxembourg

Macedonia

Malaysia

Malta

Mexico(I)

Moldova

Montenegro

Morocco

Netherlands

New Zealand

Norway

Pakistan(IV)

Panama

Poland

Portugal

Qatar

Romania

Russia

Saudi Arabia

Serbia

Singapore

Slovak Republic

Slovenia

South Africa

Spain

Sweden

Switzerland

Thailand(IV)

Turkey


Ukraine(IV)

United Kingdom

United States(I)

Uzbekistan

Vietnam

Zambia(IV)

NOTES










ISRAEL

KEY FEATURES

Competent authority

Transfer Pricing Department (‘TPD’) of the Israeli Tax Authority.


Sections 85A (d) and 158 of the Income Tax Ordinance.




Applications may be made by any Taxpayer seeking an APA to cover international transactions.

Key deadlines The tax authorities have a 120 day timeframe within which it must approve or reject an APA application, however a 60 day extension may be granted where notice is given to the Taxpayer.

APA term limits There is no specific guidance for APA term limits. In practice, the APA term will range between three to four years.










ISRAEL (cont’d)



While there is no specific guidance on the content of an APA application, an initial APA request should be sent to the TPD and include:

■ the essential facts;

■ transfer pricing documentation;

■ relevant documents, approvals, opinions, declarations, estimates, and agreements;

■ a description of the intercompany transaction(s); and

■ the Taxpayer’s proposed consideration for the transaction(s), including the profit level margin.

The TPD will then respond to the Taxpayer with a request for the following data:

■ information regarding comparable transactions;

■ the chosen TP method;

■ comparability factors and details regarding any adjustments made to the comparability factors;

■ the reasons for choosing the selected method;

■ the results of the comparables;

■ the relevant range of values or the interquartile range and any conclusions drawn from the comparison;

■ financial reports of both parties for the previous three years; and

■ any document or other detail deemed necessary for the ITA decision.

The TPD will then negotiate with the Taxpayer and may request more documents, meetings, and site visits.

Language There is no specific guidance on the language in which documentation must be submitted. In practice, the application is expected to be submitted in Hebrew while the documentation may be submitted in English.



ISRAEL (cont’d)


General The Tax authority has a 120 day timeframe within which it must approve or reject an APA application, however a 60 day extension may be granted where notice is given to the Taxpayer. If the tax authorities do not issue their decision within the time limits provided, approval of the APA will be considered to have been given and the transaction subject of the APA will be deemed to be at arm’s length.


Taxpayers should indicate in their annual tax return (Form 1385) whether they engage in international transaction(s), that are covered under an APA.

Renewal procedure

There is no specific guidance for a renewal procedure. In practice, the ITA supports APA renewals however, the procedure is similar to the initial APA as stated above.

COUNTRY EXPERIENCE


MAP PROCEDURE

MAP provisions MAP provisions have not been incorporated into domestic Israeli law.


ISRAEL (cont’d)



AustriaBelarusBelgiumBrazilBulgariaCanada(IV)

ChinaCroatiaCzech RepublicDenmark(I)

El SalvadorEthiopiaFinlandFranceGermany(IV)

GeorgiaGreeceHungaryIndiaIreland(I)

Italy Jamaica

Japan Korea (Republic of)MexicoNetherlandsNorwayPhilippinesPolandPortugalRomaniaRussiaSingaporeSlovak RepublicSouth AfricaSpainSwedenSwitzerlandThailandTurkeyUkraineUnited KingdomUnited StatesUzbekistan

NOTES










ITALY

KEY FEATURES

Competent authority

Central Directorate of Assessment of the Italian Revenue Agency (‘the Agency’)


Article 31-ter ph. a) of the Presidential Decree No. 600 of 29 September 1973; and Statement of Practice No. 42295, issued by the Italian Revenue Agency.




Taxpayers are eligible to apply for an APA if they:

■ are resident companies that are owned by, own, or are subject to common control by a non-resident company;

■ hold stakes in the assets, funds, or capital of non-resident Taxpayers, or have stakes in the assets, funds or capital held by non-resident Taxpayers;

■ have paid interest, dividends, or royalties to non-resident or have been paid interest, dividends, or royalties by non-residents; and

■ operate in Italy through a PE, or are residents of Italy that operate abroad through a PE.

Key deadlines APA applications must be submitted before submission of a tax return. The Agency will either accept or reject the application within 30 days from its notification. The entire procedure shall be concluded within 180 days from the notification of the APA.





Collateral issues Taxpayers subject to an ongoing tax audit cannot apply for an APA.


Overview Taxpayers may request a pre-filing meeting with the Agency. A formal APA application can then be submitted.


ITALY (cont’d)





The APA application must include:

■ the company name and address of its registered office;

■ the applicable tax code and/or VAT;

■ the name and contact details of other related entities;

■ an outline of the transactions covered under the APA;

■ a summary description of operations and related goods and services; and

■ the proposed TP method and reasons why this is the most appropriate in the circumstances.

If successful, the Agency will send a copy of the agreement to the foreign CA(s) where the counterparties are resident for tax purposes.




General The Agency follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


Taxpayers must prepare and make available documents and information at the request of the Agency. The Agency may also request access to the Taxpayer’s premises.

Renewal procedure

Applications for the renewal of APAs are required to be submitted 90 days before expiry.

COUNTRY EXPERIENCE

Statistics There were 143 APA application requests in 2015 and 27 completed applications. The average completion time was 40 months for bilateral and multilateral APAs. The Italian Revenue Agency has had an APA program since 2003.


ITALY (cont’d)

MAP PROCEDURE




Albania

Algeria

Argentina

Armenia

Australia

Austria

Azerbaijan(IV)

Bangladesh

Belarus

Belgium

Bosnia-Herzegovina

Brazil

Bulgaria

Canada(I)

Chile(IV)

China

Congo(IV)

Croatia

Cyprus

Czech Republic

Denmark

Ecuador

Egypt

Estonia

Ethiopia

Finland

France

Georgia(I)

Germany

Ghana

Greece

Hungary

Hong Kong(I), (IV)

Hungary

Iceland

India

Indonesia

Ireland

Israel

Ivory Coast

Japan

Jordan

Kazakhstan

Korea (Republic of)

Kuwait

Latvia

Lebanon

Lithuania

Luxembourg

Macedonia

Malaysia

Malta

Mauritius

Mexico(IV)


ITALY (cont’d)


Morocco

Moldova

Mozambique

Netherlands

New Zealand

Norway

Oman

Pakistan

Philippines

Poland

Portugal

Qatar

Romania

Russia

San Marino(IV)

Saudi Arabia

Senegal

Serbia and Montenegro

Slovak Republic

Slovenia

South Africa

Spain

San Marino(IV)

Singapore

Sri Lanka

Sweden

Switzerland

Syria

Tanzania

Thailand

Trinidad and Tobago

Tunisia

Turkey

Uganda

Ukraine(IV)


United Kingdom

United States(I)

Uzbekistan

Venezuela

Vietnam

Zambia

NOTES










JAPAN

KEY FEATURES

Competent authority

National Tax Agency (‘NTA’) and relevant regional tax bureau (‘Competent tax authorities’).


Chapter 6 of the Commissioner’s Directive on the Operation of Transfer Pricing (Administrative Guidelines) 2001, issued by the NTA.





Key deadlines APA applications must be submitted by the first day of the first fiscal year to be covered. If a bilateral or multilateral with a request for rollback is filed before a TP examination commences, the competent tax authorities will not commence an examination of the rollback years. However if an examination has already commenced, the examination cannot be prevented by filing an APA application.




Rollback of the APA terms is available for bilateral APAs for up to six prior tax years where the TP method is regarded by the Competent tax authorities as appropriate for those prior years. Rollback is not available for unilateral APAs.



JAPAN (cont’d)


Overview Taxpayers may request a pre-filing meeting with the CAs, during which the following information will be discussed:

■ necessary items for formal filing of an APA application;

■ information necessary for the Taxpayer to decide whether to file the APA and what kind of APA filing is appropriate; and

■ timeline of the application.





Formal APA applications must include:

■ an outline of the transaction(s) covered by the proposed APA and organisation(s) conducting those transactions;

■ the arm’s length price computation method and explanation of why the proposed method is the most appropriate;


■ transaction flows, payment flows, and currencies used;

■ description of the capital relationships and ‘control in substance’ relationships between the foreign related parties and the Taxpayer;

■ analysis on functions, risks, and assets of the Taxpayer and related parties;


JAPAN (cont’d)

■ description of the business operations, accounting and circumstances of the applicant and foreign related parties for the past three business years;

■ outline of the issues concerned in any audit, administrative appeal, or lawsuit pertaining to transfer pricing of which the related party is subject in its jurisdiction;

■ documentation that proves, based on TP methods applied to the three business years prior to the years covered by the proposed APA, that the TP method is the most appropriate; and

■ overview of the ultimate parent company of the multinational enterprise to which the tax payer belong (for unilateral APA application only).

Language The documentation should be submitted in Japanese.



General A Taxpayer with paid-in capital of JPY 100 million (approx. USD 920,200) or more must submit the APA application to the Commissioner of the Taxpayer’s regional tax bureau. Taxpayers with paid-in capital of less this amount are required to submit applications to the director of the Taxpayer’s district tax office.



The Taxpayer must submit a report demonstrating compliance with the APA. The submission must be made prior to the deadline for filing the final tax return and must include:

■ evidence that the Taxpayer has filed its return for the covered years in compliance with the APA;

■ income statements of the applicant and foreign related parties (where deemed necessary);

■ critical assumptions that were the premise for the APA;

■ where results of the confirmed transaction do not comply with the APA, an explanation of the adjustments to prices that the Taxpayer has carried out; and

■ financial circumstances of both the Taxpayer and the foreign related parties during the covered years.

The regional tax bureaux may also conduct audits of Taxpayer compliance with APAs, involving a site visit and request for additional information to verify the Taxpayer’s statements in the annual compliance reports.

Renewal procedure

An APA renewal request will go through the same stages as the initial APA request.

COUNTRY EXPERIENCE

Statistics There were 151 active bilateral APA applications during NTA’s operation year 2015 (as of 30 June 2016) and 126 completed applications. The NTA has had an APA program since 1987.

MAP PROCEDURE

MAP provisions Commissioner’s Directive on the Mutual Agreement Procedure, issued by the NTA.

JAPAN (cont’d)




Australia AustriaBahamas Bangladesh Belgium Bermuda British Virgin Islands(IV)

Brunei Bulgaria Canada Cayman Islands Chile(I), (IV)

ChinaCzech RepublicEgypt FinlandFrance GeorgiaGermany(I), (IV)

Guernsey(IV)

Hong Kong(I)

HungaryIndia(IV)

IrelandIsle of Man

IsraelItalyJersey(IV)

KazakhstanKuwait(IV)

Liechtenstein(IV)

LuxembourgMacau(IV)

MalaysiaMexico Netherlands(I)

New Zealand(I), (IV)

NorwayOman(IV)

Pakistan Philippines PolandPortugal(I), (IV), (VI)

Qatar(IV)

RomaniaRussiaSamoa(IV)

Saudi Arabia

JAPAN (cont’d)


JAPAN (cont’d)

1 This arrangement is a private-sector arrangement signed between the Interchange Association and the Association of East Asian Relations,

which are both private institutions. This is not Treaty concluded by the Government of Japan with the relevant authorities in Taiwan.


Singapore South Africa South Korea SpainSweden(I), (IV)

Switzerland Taiwan1

ThailandTurkeyUkraineUnited Arab Emirates(IV)

United Kingdom(I), (IV)

United StatesVietnam

NOTES










LUXEMBOURG

KEY FEATURES

Competent authority

Luxembourg Tax Authorities (‘LTA’)


Section 29a Abgabenordnung (‘AO’); Articles 56 and 56bis of the Luxembourg Income Tax Law (‘LITL’); and Circular-Loi concernant l’impôt sur le revenu (‘LIR’) n° 56/1-56bis/1 dated 27 December 2016 (‘Circular’).




The transaction to be covered under the APA must adhere to the arm’s length principle and must not be purely tax driven. Financing companies that seek to enter into an APA with the LTA are required to determine remuneration on the basis of an analysis of the functions performed, assets used and risks assumed in relation to financing activities, and an economic analysis of data on comparable transactions. Financing companies must have a sufficient amount of equity in relation to functions and this equity needs to be available if the risk in relation to the financing activities materialises. Luxembourg based financing companies must meet capital and substance requirements and an appropriate arm’s length margin.

Key deadlinesThe LTA requires that the transaction(s) covered in the APA have not taken place before the Taxpayer applies for the APA.


Filing fee

The filing fee for an APA is between EUR 3,000 (approx. USD 3,200) and EUR 10,000 (approx. USD 10,700), depending on the complexity of the application. The fee is due and fully payable within one month following confirmation by the LTA of the amount to be charged, following the initial review of the application.





LUXEMBOURG (cont’d)


Overview

Pre-filing meetings are optional. A meeting with the tax inspector may take place in order to discuss the tax issues related to the transaction to be covered under the proposed APA.




Content of APA Application

The application should at least include the following elements:■ name, address and file number of the Taxpayer and

the relevant entities involved in the transactions or arrangements which are covered by the application;

■ a detailed description of all intra-group financing transactions, and legal arrangements or legislation referred to in the request accompanied by a detailed statement of the legal position of the applicant;

■ qualifications of the relevant employees and description of their duties;

■ any foreign jurisdiction(s) relevant to the transactions or arrangements;

■ a presentation of the legal structure of the group, including information on the beneficial owner(s) of the capital of the Taxpayer;

■ the tax years to be covered by the proposed APA;



■ a transfer pricing study in compliance with the recommendations of the OECD guidelines, including:

– a description of the computation of equity allocation required to assume risks;

– a description of the group and the interdependent links between the functions performed by the entities participating in the controlled transactions and the rest of the group, together with a description of the value creation in a broad sense within the group by the entities participating in the transactions;

– a defined scope of the transactions;

– a complete list of researched comparables;

– a matrix of rejected potential comparables together with justifications of such rejections;

– the final list of comparables selected and used to determine the arm’s length remuneration applied to the precisely defined intra-group transaction(s);

– a general description of market conditions;

– an analysis of all relevant ancillary tax issues arising from the proposed methodology;

– a list of APAs concluded in other countries in connection with the analysed transaction(s);

– a list of any APAs in connection with the analysed entity which are still in force at the time the request is submitted; and

– forecasted profit and loss accounts for the years covered by the request for the APA.

■ The assurance that the information required to assess the facts is complete and truthful.



Language Documentation should be submitted in French or English.



General

Taxpayers that seek to enter into an APA with the LTA should note that while pre-filing is optional, there are detailed guidelines that must be followed in relation to the transfer pricing study required as part of the APA application.


The tax returns of the Taxpayer must be in line with the content of the APA, with the appendices including computations demonstrating whether the transfer pricing requirements covered by the APA have been met. If the commercial accounts of the company do not adhere to the APA terms, tax adjustments will be made.

Renewal procedure

There is no specific guidance for renewal procedures. Taxpayers may after the term of the APA has elapsed submit a new APA application to the LTA and include updated methodologies and analyses, which could result in different outcomes.

COUNTRY EXPERIENCE

StatisticsThere were 163 application requests in 2015 and 145 completed applications. The LTA has had an APA program since 2011.

MAP PROCEDURE

MAP provisionsThere are no specific provisions for the MAP procedure in domestic law.




Andorra(IV)

ArmeniaAustriaAzerbaijan BahrainBarbados BelgiumBrazilBulgariaCanadaChinaCroatia(IV) Czech Republic(IV)

DenmarkEstonia(I), (IV)

FinlandFranceGeorgiaGermany(I), (IV)

GreeceGuernsey(I), (IV)

Hong Kong(I)

HungaryIcelandIndiaIndonesiaIrelandIsle of Man(I), (IV)

IsraelItalyJapanJersey(I)

Kazakhstan(IV)

Laos(IV)

LatviaLiechtenstein(I)

LithuaniaMacedonia(IV)

MalaysiaMaltaMauritius(I)

MexicoMoldovaMonacoMoroccoNetherlandsNorwayPanamaPolandPortugalQatar Serbia(IV)

Singapore(IV)

RomaniaRussiaKorea (Republic of)San Marino(I)

Saudi Arabia(IV)

Seychelles(I), (IV)

Slovak RepublicSloveniaSingapore(IV)

South AfricaSpainSri Lanka(IV)

Sweden





Switzerland(I)

Tajikistan(IV)

Taiwan(IV) ThailandTrinidad and Tobago TunisiaTurkey

Ukraine


United Kingdom

United States

Uzbekistan

Vietnam

NOTES










MEXICO

KEY FEATURES

Competent authority

Central Administrator for Transfer Pricing Audits, State Administration of Tax (‘SAT’)


Article 34-A of the Federal Tax Code; Temporary Tax Regulations 2.12.7, 2.12.8, 3.3.1.28; and Tax Procedure Matter 102/CFF of Annex 1-A of the Temporary Tax Regulations for 2017.




There is no specific guidance, however in practice requests are more likely to be successful if:

■ the transfer pricing issues are complex and uncertainty exists as to how the arm’s length standard should be applied;

■ the APAs relate to maquiladora1 and

■ there is a high probability of double taxation without an APA.


APA term limits There is a five year maximum term for an APA, however this validity period may be extended for bilateral and multilateral APAs negotiated under the MAP provisions of a tax treaty, and at the discretion of the relevant CA(s) involved.

Filing fee The filing fee for an APA is MX 216,309 (approx. USD 11,530) The fee for an annual review is MX 43,262 (approx. USD 2,300).

1 Refers to factories in Mexico run by a foreign entity, and exporting its products to that entity’s country of origin.


MEXICO (cont’d)


APAs may be valid for the fiscal year in which they are requested, the immediately preceding year, and for up to three fiscal years following that in which they are requested. This validity period may extended for bilateral and multilateral APAs negotiated under the MAP provisions of a tax treaty, and at the discretion of the relevant CA(s) involved.



Overview Although there is not an explicit procedure for a pre-filing meeting, in practice Taxpayers may, in conjunction with the Central Administration of International Fiscal Audit branch of the General Administration of Large Taxpayers within the SAT, analyse the information and TP method expected to be submitted for consideration.





The application should set out:■ the Taxpayer’s tax identification number and country

of tax residency, indicating whether it has branches in Mexico;

■ the name or corporate business name, tax identification number, and address of all related parties in Mexico or abroad, that have direct or indirect ownership in the equity of the Mexican Taxpayer; indicating direct shareholders, as well as the ultimate parent company of the holding company in line with the IFRS;

■ the name or corporate business name, tax identification number, and address of all related parties in Mexico that have a business relationship with the Mexican Taxpayer; as well as any establishment, branches, warehouses, platforms, vessels, or areas where exploration or extraction of hydrocarbons that may be relevant regarding the TP method that is selected in the application;


MEXICO (cont’d)

■ the name or corporate business name, tax identification number, and address of the foreign related parties that have a business relationship with the Mexican Taxpayer;

■ the name or corporate business name, tax identification number, and address of all related parties in Mexico or abroad, that may be involved in dealing with the response to the APA application request;

■ the tax years intended to be covered under the proposed APA;

■ the currency under which the transaction(s) to be covered were agreed between the Mexican Taxpayer and its related parties in Mexico or abroad;

■ a description of the business activities of the group to whom the Taxpayer is part of;

■ a description of intangibles that belong to the group;■ the name and country of residence of the entities that

belong to the group that generate income, or have expenses with third parties, related to the business of the group; segregating them by income and expenses;

■ a detailed description of the Taxpayer’s activities;■ for the transactions or operations for which the Taxpayer

is requesting an APA:

– a detailed description of the functions and activities carried out by the Taxpayer and the Mexican or non-resident related parties that maintain a contractual or business relationship with the Taxpayer, including a description of the assets held and the risks borne by each of the parties

– the TP method proposed by the Taxpayer to determine the transfer price, including the criteria and other objective elements used to demonstrate that the method is appropriate for the covered transaction(s) for which the Taxpayer is requesting an APA

– financial information corresponding to the fiscal years to be covered and an application of the proposed TP method to its intercompany transactions

– information on comparable transactions or companies, indicating the reasonable adjustments made to eliminate differences


MEXICO (cont’d)

– a statement indicating whether the Taxpayer’s non-resident related parties have been subjected to a transfer pricing audit by any tax authority and, if so, a description of the status of the audit

– information on whether the non-resident related parties are disputing a tax controversy related to the transfer pricing before the tax authorities of a court and, if so, a description of the status of that dispute.

Documentation indicating that the fees for the APA application have been paid must be submitted. All documentation must be submitted electronically.




General SAT follows a standard application and monitoring process. There are no unique procedural aspects.


As part of the APA process, SAT may request site visits for verification of the functional analysis, business purpose, and other relevant information.

Renewal procedure


COUNTRY EXPERIENCE


MAP PROCEDURE

MAP provisions General format of a MAP request can be found in s 2.2.1 of the Temporary Tax Regulations for 2017.


MEXICO (cont’d)



Argentina AustraliaAustriaBahrain(IV)

BarbadosBelgiumBrazilCanada(I)

ChinaColombia(IV)

Czech RepublicEcuadorEstonia(IV)

FinlandFranceGermanyGreeceHong Kong(IV)

Hungary(IV)

IcelandIndiaIndonesiaIreland(I)

IsraelItaly(IV)

Japan

Kuwait(IV)

Latvia(IV)

Lithuania(IV)

Luxembourg Malta(IV)

NetherlandsNew ZealandPanamaPeru(IV)

PolandPortugalQatar(IV)

RomaniaRussiaSingapore(I), (IV)

Slovak RepublicSouth AfricaSpainSwedenSwitzerland Turkey(IV)

Ukraine(IV)

United Arab Emirates(IV)

United KingdomUnited States(I)

Uruguay


MEXICO (cont’d)

NOTES










NETHERLANDS

KEY FEATURES

Competent authority

APA/Advance Tax Ruling (‘ATR’) team of the Dutch Tax Authority (‘APA/ATR team’)


Decree DGB 2014/3098 regarding the APA application procedure; and Decree DGB 2014/296M regarding the organisational and competence aspects of the APA/ATR practices.




The Netherlands provide APAs only if either:

■ the Taxpayer or relevant parties conduct operational activities in the Netherlands, or can prove they have plans to do so; or

■ the Taxpayer meets specified minimum substance and real risk requirements for intermediary holding companies and intergroup financing, licensing, and leasing companies.

Key deadlines There is no specific guidance. The critical dates negotiated with the APA/ATR team at the pre-filing meeting will determine the date from which the APA will commence.

APA term limits There is a five year maximum term for an APA, although longer terms may be possible if the Taxpayer’s circumstances involve long term contracts.



Rollbacks are available if the facts and circumstances in prior years are comparable to those in the APA application, or if accurate adjustments can be made to the relevant prior years. For unilateral APA requests, rollback is available in case the rollback does not result in a decrease of taxable profits of still open years. For bilateral and multilateral APAs, the foreign tax authorities should agree with the rollback.



NETHERLANDS (cont’d)


Overview Pre-filing meetings with the APA/ATR team are available and provide the Taxpayer with the opportunity to obtain clarity on the documentation requirements and essential elements for a successful APA application. A joint case management plan can also be prepared in collaboration with the APA/ATR team, outlining the formal APA negotiation process and the anticipated timeline between formal filing and completion.





The APA/ATR team generally require the following information to be submitted in an APA application:

■ the names and addresses of the entities involved;

■ the transactions, products, businesses or arrangements to be covered;

■ a description of the enterprises and/or PE’s involved in the transactions/agreements;

■ the relevant foreign CA(s) involved;

■ the global organisational structure, history, financial statement data, products, functions (including risks assumed), and assets (tangible and intangible) of the enterprises involved;

■ a description of the proposed TP method, including a comparability analysis;

■ critical assumptions underpinning the APA application and a discussion of the effect of changes in those assumptions or other events;

■ the accounting period or fiscal years to be covered; and

■ a description of market conditions including industry trends and competitive environment.

Language The documentation should be submitted in Dutch or English.



SME provisions A process designed to accommodate small businesses and specific support from the APA/ATR team for providing comparable data on independent enterprises is available for Taxpayers that meet the following requirements:

■ the value of assets is not more than EUR 4.4 million (approx. USD 4.71 million);

■ the net turnover for the financial year does not exceed EUR 8.8 million (approx. USD 9.42 million);

■ the average number of employees for the financial year is less than 50.

(Not available for entities engaging in financial service activities without a real economic presence in the Netherlands)


General The APA/ATR team follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


The Taxpayer is required to indicate that they have obtained an APA in their tax return. Annual compliance reports are not required. Periodic audits by the APA/ATR team may take place to ensure compliance with critical assumptions included in the APA.

Renewal procedure

At the request of the Taxpayer, it can be evaluated whether a new APA can be concluded under the same conditions as those of an existing APA.



COUNTRY EXPERIENCE

Statistics There were 261 APA application requests in 2015 and 236 completed applications. The average completion time was 24 months for bilateral and multilateral APAs. The APA/ATR team has had an APA program since 1994 based on a decree dated 19 October 1994, no IFZ94/855, although the decree was primarily for APA procedures in relation to the US. The APA/ATR team issues OECD conform rulings as of 1 April 2001.

MAP PROCEDURE

MAP provisions MAP Decree dated 29 September 2008, No. IFZ2008/248M.




Albania(I)

ArgentinaArmeniaAustraliaAustriaAzerbaijan Bahrain(I)

BangladeshBarbados(I)

BelarusBelgiumBermuda(I)

Bosnia-Herzegovina BrazilBulgariaCanada(I)

China(IV)

Czech RepublicCroatiaDenmarkEgypt(I)

Estonia(I)

Ethiopia(IV)

FinlandFranceGeorgia(I)

Germany(I)

Ghana(I)

GreeceHong Kong(I)

HungaryIcelandIndia

IndonesiaIrelandIsraelItaly Japan(I)

Jordan(I)

KazakhstanKoreaKosovo Kuwait(I)

Latvia(I)

Lithuania(I)

LuxembourgMacedonia(I)

MalaysiaMaltaMexicoMoldova(I)

Montenegro MoroccoNew ZealandNigeriaNorway(I)

Oman PakistanPanamaPhilippinesPoland(I)

Portugal(VI)

Qatar(I)

RomaniaRussiaSaudi Arabia




Serbia SingaporeSlovakia Slovenia(I)

South Africa(I)

Spain(IV)

Sri LankaSwedenSwitzerland(I)

SurinamTaipei(III)

ThailandTunisia

Turkey Uganda(I)

Ukraine(I)

United Arab Emirates(I)

United Kingdom(I)

United StatesUzbekistan(I)

VenezuelaVietnamZambia(I)

Zimbabwe

NOTES











NEW ZEALAND

KEY FEATURES

Competent authority

Inland Revenue Department (‘IRD’)


Part 5A of the Tax Administration Act; and general guidance available on the IRD’s website.


Unilateral, bilateral, and multilateral APAs are available under the private binding rulings regime.




APA term limits There is no specific guidance for APA term limits. In practice there is usually a maximum term of five years.

Filing fee A flat fee of NZD 322 (approx. USD 226) is payable to the IRD. Any overseas travel is required for the completion of an APA, and the IRD will seek to recover out of pocket expenses on an actual and reasonable basis from the Taxpayer. An estimate of such costs will be provided to the Taxpayer prior to the travel being undertaken.



Collateral issues Applications from Taxpayers under audit by the IRD for tax issues will be refused.


NEW ZEALAND (cont’d)


Overview Taxpayers intending to apply for an APA should contact the IRD for a pre-filing meeting with a Principal Advisor (Transfer Pricing) to discuss the proposal informally. During the meeting the following will be discussed and presented for consideration:

■ an overview of the business operations;

■ background information on the foreign entities involved in the transactions intended to be covered by the APA; and

■ TP method intended to be applied.





After the pre-filing meeting the APA application will be formalised and submitted for consideration. This application should include:■ identification of the relevant parties;■ analysis of key profit drivers;■ a comprehensive functional analysis;■ the choice of TP method;■ a study of comparables;■ proposed application of methodology and comparables; and■ copies of all inter-company agreements.

Site visits and interviews may be required during the application review stage to inspect the actual operations of the relevant associated parties, especially where valuable intangibles are in issue and a residual profit split methodology is proposed.






General The IRD follows a standard pre-filing, application, and monitoring process. There are no unique procedural aspects.


Taxpayers are required to provide an Annual Compliance Report at the time of filing their annual returns and indicate whether or not they have adhered to the terms of the APA.

Renewal procedure

Taxpayers may request to renew an existing APA following the same process as it did to initiate the existing APA.

COUNTRY EXPERIENCE

Statistics As of 31 December 2015, 140 APAs had been completed by the IRD and 13 applications were in progress.

MAP PROCEDURE






Australia(I)

AustriaBelgiumCanada(IV)

ChileChinaCzech RepublicDenmarkFijiFinlandFranceGermanyHong KongIndiaIndonesiaIrelandItalyJapan(I), (IV)

Korea (Republic of)Malaysia

MexicoNetherlandsNorwayPapua New Guinea(IV)

PhilippinesPolandRussiaSamoa(IV)

SingaporeSouth AfricaSpainSwedenSwitzerlandTaipei(III)

ThailandTurkeyUnited Arab EmiratesUnited KingdomUnited StatesVietnam(IV)

NOTES










PERU

KEY FEATURES

Competent authority

Peruvian Tax Authority (‘SUNAT’) and the General Director of SUNAT or his delegate (‘Tax authorities’)


Article 32 of Income Tax Code

Types of APAs Unilateral, bilateral, and multilateral APAs are available.


Requests are more likely to be successful if:

■ transfer pricing issues are complex and uncertainty exists as to how the arm’s length standard should be applied; and


Key deadlines APA are available for a maximum of three fiscal years following that in which they are requested.

APA term limits There is a four year maximum term for an APA.

Filing fee No specific guidance.









PERU (cont’d)

APA APPLICATION REQUIREMENTS


The application should provide information and documentation necessary for explaining the facts and circumstances of the Taxpayer and selected TP method, including:

■ the Taxpayer’s name, business address, tax identification number, and country of residency of the related entity;

■ a description of the principal activities of the group, including where the activities are carried out;

■ a description of the transaction(s) between the Taxpayer and the related entity;

■ a detailed description of the functions and activities carried out by the Taxpayer and the Peruvian or non-resident related parties that maintain a contractual or business relationship with the Taxpayer, including a description of the assets held and the risks born by each of the parties;

■ the method(s) proposed by the Taxpayer to determine the transfer price, including the criteria and other objective elements used to demonstrate that the method is appropriate for the covered transaction(s);

■ information on comparable transaction(s) or companies, indicating the reasonable adjustments made to eliminate differences; and

■ any other documentation or information necessary or as required by the Tax authorities.




PERU (cont’d)


General The Tax authorities follow a standard application, and monitoring process. There are no unique procedural aspects.



Renewal procedure


COUNTRY EXPERIENCE


MAP PROCEDURE




BrazilChile ColombiaKorea (Republic of)Mexico(IV)

PortugalSpainSwitzerland


NOTES









PERU (cont’d)


POLAND

KEY FEATURES

Competent authority

The Head of National Fiscal Administration (‘Tax authority’)


Unit IIa, arts 20a-20r of the Tax Ordinance Act 1997.





Key deadlines Unilateral APAs should be concluded within six months; bilateral APAs should be concluded within 12 months; and multilateral APAs should be concluded within 18 months.

APA term limits Restricted to a maximum of five years, with possibility of renewal for subsequent periods no longer than five years.

Filing fee One per cent of the transaction value and with the following thresholds: Domestic unilateral agreement –

PLN 5,000-50,000 (approx. USD 1,265-12,650)

Foreign unilateral agreement –

PLN 20,000-100,000 (approx. USD 5,060-25,300)

Bi/multilateral agreements –

PLN 50,000-200,000 (approx. USD 12,650-50,600)

The fee for renewal amounts to half the fee for the original APA application.


Rollback is not available. APAs can only apply prospectively from the day of submission of the APA application.



POLAND (cont’d)


Overview The Taxpayer may consult with the Tax authority in relation to the expediency of concluding the APA, the information required to be included in the application, the procedure and expected time of concluding the APA, and the expected conditions and validity attached to it once effective.





APA applications must include the selected TP method for setting the transaction price (or the selected method of the division of costs in the case of APA applications concerning the division of costs). Specifically applications must include:■ a description of application of the proposed TP method:

– principles for calculating the transaction price;

– financial forecasts that the transaction price calculation is to be based on; and

– an analysis of the comparison data used for the transaction price calculation.

■ circumstances which may affect the correct setting of the transfer price:

– conditions set between parties and a description of the course of the relevant transaction between the related parties;

– analyses of assets, functions and risks of parties, and transaction related costs on overview;

– a description of an economic strategy or any other circumstances that may affect the transaction price;

– data concerning the economic situation of the branch of the industry in which the applicant pursues its activity and data concerning business transactions made by unrelated entities used for calculating the transaction price; and

– the organisational and capital structure of the applicant and affiliated entities, and financial accounting principles applied by them.


POLAND (cont’d)

■ documents exerting an important influence on the conditions of the transaction, in particular texts of agreements, arrangements and other documents indicating the intentions of parties to the covered transactions;

■ the proposed duration of the APA with an indication as to whether the application is intended to commence on the day of submitting the APA application;

■ a list of related entities with whom the APA will be concluded and their consent to submit required documents to the CA; and

■ a description of critical assumptions backing the proposed TP method in accordance with the arm’s length principle.

Acceptance of the specified TP method in the APA is delivered in the form of an administrative decision by the Minister of Finance.

Language The documentation should be submitted in Polish.





The Taxpayer must provide an annual report together with their tax return for the duration of the APA.

Renewal procedure

Applications for the renewal of APAs are required to be submitted six months before expiry. Renewals will be allowed if the elements set in the APA decision issued by the Minister of Finance for setting the transaction price between affiliated entities has not materially changed.


POLAND (cont’d)



Albania Armenia AustraliaAustria Azerbaijan BangladeshBelarus Belgium(I)

Bosnia-Herzegovina Bulgaria Canada(IV)

ChileChina Croatia Cyprus Czech Republic(IV)

Denmark Egypt

Estonia Finland(IV)

France Georgia Germany Greece Guernsey(IV)

Hungary Iceland India Indonesia Iran Ireland Isle of Man(IV)

Israel Italy Japan Jersey(IV)

COUNTRY EXPERIENCE

Statistics There were eight APA application requests in 2015 and six completed applications. The average completion time was 18 months for bilateral and multilateral APAs. The regulations with respect to APAs first came into force in 2006.

MAP PROCEDURE

MAP provisions Decree of the Ministry of Finance of 10 September 2009, as amended on 18 July 2013.



Jordan Kazakhstan Korea (Republic of) Kuwait Kyrgyzstan Latvia Lebanon Lithuania LuxembourgMacedonia Malaysia(IV) Malta Mexico Moldova Mongolia MontenegroMorocco Netherlands(I)

New Zealand Norway(IV)

Pakistan Philippines Portugal(VI)

Qatar

Romania Russia Saudi Arabia(IV)

SerbiaSingapore(IV)

Slovak Republic Slovenia South Africa Spain Sri Lanka SwedenSwitzerland(I)

Syria Taipei(III), (IV)

Tajikistan Thailand Tunisia TurkeyUkraineUnited Arab Emirates United Kingdom United States Uzbekistan Vietnam Zimbabwe

POLAND (cont’d)


NOTES









POLAND (cont’d)


PORTUGAL

KEY FEATURES

Competent authority

Portuguese Tax Authority (‘PTA’)


Article 138 of the Code of Taxation of Income and Gains of Collective persons; and Ministerial Order Portaria nº 620-A/2008 of 16 July 2008.





Key deadlines The APA proposal must be presented at least 180 days before the beginning of the applicable tax year. The Tax authority is required under Ruling 620-A/2008 to complete the APA process within 180 days for unilateral applications and 360 days for bilateral and multilateral applications.

APA term limits There is a three year maximum term for an APA.

Filing fee The filing fee is between EUR 3,150 (approx. USD 3,375) and EUR 35,000 (approx. USD 37, 500), depending on Taxpayer turnover. The amount is calculated by applying the set of rates established in Ruling 923/99 of 20 October 1999 to the mathematical average of the Taxpayer’s turnover for the three taxable years prior to the filing of the APA application.





PORTUGAL (cont’d)


Overview Submission of a written request to initiate a preliminary evaluation of the agreement’s terms and conditions is a mandatory step in the APA application process. The preliminary evaluation involves:

■ an analysis of the Taxpayer’s transfer pricing policy;

■ an analysis of whether an APA is available in the circumstances and the most appropriate solution; and

■ a determination of the documentation and information required in the formal APA application.

The request must include a description of the activities carried out by the entity, related-party transactions, the related entities, the APA proposal description and other relevant documents. The preliminary phase may involve joint meetings with the PTA.




Content of APA Application

The content of the APA proposal will be discussed during the pre-filing meeting. The application must include:

■ identification of the entities involved;

■ description of the activities carried out by the entities;

■ a proposal on the approach for determining TP methods and supporting documentation;

■ description of the transactions included;

■ the proposed duration;

■ confirmation of the simultaneous submission of the APA application to the different tax authorities; and

■ a declaration of cooperation from the Taxpayer that they will provide all necessary information.

Language Documentation in foreign languages must be translated to Portuguese at the request of the PTA.



PORTUGAL (cont’d)


General A unilateral APA agreement must be reached with the PTA within 180 days from the formal acceptance of the APA request. Bilateral and multilateral APAs must be reached within 360 days from formal acceptance.


The Taxpayer must file an annual report with their tax return demonstrating compliance with the terms and conditions for each taxable year covered by the APA.

Renewal procedure

Applications for the renewal of APAs are required to be submitted six months before expiry. An APA renewal request will go through the same stages as the initial APA request. Renewal fees are reduced by 50 per cent.

COUNTRY EXPERIENCE

Statistics There were two APA application requests in 2015 and three completed applications. The PTA has had an APA program since 2008.

MAP PROCEDURE

MAP provisions Article 19 of Ruling 1446-C/2001; and Article 2 of Ministerial Order nº 620-A/2008 of 16 July 2008.



AlgeriaAustria(VI)

BelgiumBulgaria(VI)

CanadaCape VerdeChileChina(VI)

ColombiaCroatiaCuba(VI)

Cyprus

Czech RepublicDenmark(VI)

Estonia(VI)

Finland(VI)

France(I), (VI)

Georgia(IV)

GermanyGreece(VI)

Guinea-BissauHong Kong(IV), (VI)

Hungary(VI)

Iceland


PORTUGAL (cont’d)


The following treaties include MAP provisions which are the basis for bilateral and multilateral APA negotiations:1

IndiaIndonesia(VI)

IrelandIsraelItalyJapan(I), (IV), (VI)

Korea(VI)

KuwaitLatvia(VI)

LithuaniaLuxembourgMacaoMaltaMexicoMoldovaMoroccoMozambiqueMozambiqueNetherlands(VI)

NorwayPakistan(VI)

Panama(VI)

PeruPoland(VI)

Qatar(VI)

Romania(VI)

RussiaSaudi ArabiaSenegalSingapore(VI)

Slovenia(VI)

South Africa(VI)

Spain(VI)

Sweden(VI)

Switzerland(VI)

Tunisia(VI)

TurkeyUkraineUnited Arab EmiratesUnited KingdomUnites States(VI)

UruguayVenezuela(VI)

Vietnam

1 For multilateral APAs, Ministerial Order nº 620-A/2008 provides that the MAP provisions under DTTs must be identical to the wording of para 3, art 25 of the OECD Model.

NOTES










ROMANIA

KEY FEATURES

Competent authority

National Agency for Tax Administration (‘NATA’)


Article 52 of Law 207/2015 of the Fiscal Procedural Code; and Order 3735/2015 for the procedure on the issuance and modification of APAs and the amendment of APAs.





Key timing requests, deadlines

NATA will issue a decision on the APA application within 12 months for unilateral agreements; and 18 months for bilateral or multilateral APAs. If the tax authorities request additional information, the term will be extended with the period between the date of the request and the date when such information was provided to them (that should be no longer than 60 working days). After analysing the request, NATA will issue a draft APA for expressions of opinion and the Taxpayer will have 60 working days to respond. If the APA is issued and the Taxpayer does not agree with the content, the Taxpayer has the right to submit a notification to the NATA within 30 days from the date the APA was issued.

APA term limits There is a five year maximum term for an APA. NATA may approve longer validity periods for long term intra-group agreements.

Filing fee Large Taxpayers and/or value of transaction over EUR 4 million (approx. USD 4.3 million):

New APAs EUR 20,000 (approx. USD 21,420)Amendments EUR 15,000 (approx. USD 16,065)

All others:New APAs EUR 10,000 (approx. USD 10,710)Amendments EUR 6,000 (approx. USD 6,425)

If an APA application is rejected by NATA, the Taxpayer may request for a refund of the fee paid.


ROMANIA (cont’d)


The general rule is for an APA to enter into force starting from the fiscal year following the one when the transaction was concluded. By way of exception, APAs may also apply starting from the fiscal year in which the application was submitted or the APA was issued, provided that certain conditions are met.

Collateral issues If the transaction(s) covered by the APA and/or the Taxpayer is subject to any fiscal, administrative, or criminal procedure, this will result in the rejection of the APA application.


Overview The Taxpayer may request a meeting with the representatives of NATA prior to submitting the APA request. This is highly recommended as it provides for the opportunity of the Taxpayer to present:■ the business currently carried out and anticipated to be

carried out in Romania, as well as the overall activity of the Taxpayer and intercompany transactions; and

■■ the transaction covered by the APA, including the nature, pricing model, parties involved, and estimated financial results.

After or at the pre-filing meeting, the NATA will confirm if the transaction(s) qualify for an APA. There is no obligation to submit or present any documentation to the NATA for the purpose of the meeting.

Anonymous pre-filing Availability




The application must include the following:

■ a description of the transaction to be covered under the proposed APA;

■ details of the Taxpayer and of the affiliated person(s)/PE involved in the transaction;

■ an overview of the organisational, legal, and operational structure of the group, a list of group entities and their geographical location, and shareholdings within the group;


ROMANIA (cont’d)

■ a general description of the activity of the group and of the Taxpayer, business strategy, including any changes that have occurred prior to submitting the request;

■ a description of the main functions performed, risks borne and assets used by each entity in the group that contribute significantly to defining and creating value;

■ a description of intangible assets’ owners within the group and of the relevant property rights, the arrangements for costs contributions, or any research and development activities;

■ a description of any cost contribution arrangements concluded by the Taxpayer with affiliated parties;

■ a description of business restructurings of which the Taxpayer was involved prior to submitting the APA application;

■ a description of the transaction to be carried out between the Taxpayer and an affiliated person/PE that will be subject to the APA, highlighting particularities of such transactions and including transactional flows, invoicing flows, and estimated value of the transaction;

■ a general description of the transfer pricing policy applicable at the level of the Taxpayer;

■ a detailed presentation of the functional analysis and comparability analysis, including contractual terms of the transaction (copies of the draft agreement to be concluded between the parties should be included as an annex);

■ description of the TP method chosen to set up pricing for the transaction covered under the proposed APA, together with details on how the tested party was established;

■ the date from which the APA is to enter into force and its validity period;

■ presentation of the critical presumptions that may influence the proposed APA;

■ reference to the relevant foreign CA(s) involved in the APA;

■ proof of payment of the APA filing fee;


ROMANIA (cont’d)

■ documentation of any APAs concluded with other foreign CA(s) that are related to the relevant transaction of the proposed APA, but to which NATA is not a party; and

■ affidavits confirming the accuracy of the information included within the APA request, as well as any criminal or fiscal investigations over the transaction subject to the request.

Language The documentation must be in Romanian. If the Taxpayer has any documentation related to the transaction in another language, it needs to be accompanied by Romanian authorised translations.



General The NATA follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must submit annual reports regarding the manner in which the terms and conditions described and approved through the APA are fulfilled.

Renewal procedure

The Taxpayer may request for an extension of an APA in writing at least 30 days prior to the end of the validity period of the APA, provided that the conditions covered by the existing APA remain unchanged. The Taxpayer may amend an APA if the conditions of the transaction covered under the APA have changed.

COUNTRY EXPERIENCE

Statistics There were eight active APA applications during income year 2014 and six completed applications.

MAP PROCEDURE

MAP provisions Title IX from the Law 207/2015 of the Fiscal Procedural Code


ROMANIA (cont’d)



Albania Algeria Armenia Australia AustriaAzerbaijan Bangladesh Belarus Belgium Bosnia-HerzegovinaBulgaria(IV)

Canada China Croatia Cyprus Czech Republic Denmark EcuadorEgypt Estonia Ethiopia Finland France Georgia GermanyGreeceHong Kong(IV)

Hungary Iceland India(IV) Indonesia

IranIreland IsraelItalyJapanJordan KazakhstanKorea (Democratic People’s Republic of)Korea (Republic of) KuwaitLatvia LebanonLithuania Luxembourg Macedonia Malaysia Malta Mexico MoldovaMontenegroMorocco NamibiaNetherlands Nigeria Norway Pakistan Philippines Poland Portugal(VI)

Qatar Russia


ROMANIA (cont’d)


San MarinoSaudi Arabia SerbiaSingapore SlovakiaSlovenia South Africa Spain(IV)

Sri Lanka Sudan Sweden Switzerland Syria

Tajikistan Thailand Tunisia Turkey TurkmenistanUkraine United Arab Emirates(IV)

United KingdomUnited StatesUruguay Uzbekistan Vietnam Zambia

NOTES










RUSSIA

KEY FEATURES

Competent authority

Federal Tax Service of Russia (‘FTS’)


Articles 105.19-105.25 of the Russian Tax Code (‘RTC’).On 17 March 2017 the Ministry of Finance of Russia posted a draft order on the procedure for conclusion of bilateral APAs with the authorised bodies of foreign states. The Guidance is now the subject of public discussion.




Requests are more likely to be successful if transfer pricing issues are not complex, and involve transactions that have various comparables recognised domestically and internationally.

Key deadlines An APA will only come into force as of 1 January of the calendar year following the year in which it was signed.


Filing fee RUB 2 million (approx. USD 35,700)





Overview There is no specific guidance in the RTC. The Draft order introduces a pre-filing stage for conclusion of bilateral APAs:

Pre-filing is an optional (but advisable) stage, which allows the Taxpayer and FTS to weigh up the prospects of a successful conclusion of an APA. An application for a preliminary negotiation stage must include:

■ the name and tax residence country of the parties involved;

■ the global group structure;

■ a description of cross-border transactions; and

■ the proposed TP method.

The results of these preliminary negotiations are not binding


RUSSIA (cont’d)





The procedure for APAs is initiated by submitting a formal application in a prescribed form, together with all necessary documents. The application shall contain the following information:

■ the name and tax residence country of the parties involved;

■ the global group structure;

■ a description of cross border transaction(s) to be covered;

■ actual conditions relevant to the cross-border transaction(s);

■ arm’s length conditions relevant to the cross-border transaction(s);

■ the proposed TP method and expected result of the proposed method;

■ financial performance; and

■ information on the outcome of the application of the proposed TP method, using as an example of the most recent three years for which factual information is available.

Language Documentation should be submitted in Russian.

SME provisions Unilateral APAs are only available to ‘major taxpayers’.


General In March 2017, the Russian Ministry of Finance published a draft order on the procedure for conclusion of bilateral and multilateral APAs. Under the draft order, Taxpayers may request APAs with states that have effective DTTs with Russia. Taxpayers have the option of holding a pre-filing meeting with the FTS, and the draft order also provides a recommended APA application form and list of required documents, including:■ a demonstration of the results of the use of the proposed

TP method over the last three years for which factual data is available, and on a sample basis for the period covered by the APA;

■ critical assumptions; and


RUSSIA (cont’d)

■ other information and documentation as requested by the FTS.

The draft order proposes a standard pre-filing, application, and monitoring process. The current edition of the draft order may be updated or amended, however Taxpayers may use it as a guide for initiating the APA application process.


The Taxpayer must provide the FTS with a notification on controlled transactions under the APA. The FTS will check the Taxpayer’s compliance with the APA.

Renewal procedure

Applications for the renewal of an APA should be filed six months before the expiry date. APAs may be prolonged for a term not exceeding two years, in accordance with the general procedure.

COUNTRY EXPERIENCE

Statistics Since 2012 the authorised body in Russia has received 82 draft APAs and concluded 25 of those on a unilateral basis.

MAP PROCEDURE




AlbaniaAlgeriaArgentinaArmeniaAustraliaAustria AzerbaijanBelarusBelgiumBotswanaBrazilBulgariaCanadaChile

China(IV)

CroatiaCubaCyprusCzech RepublicDenmarkEgyptFinlandFranceGermanyGreeceHong Kong(IV) ChinaHungary


RUSSIA (cont’d)


IcelandIndiaIndonesiaIranIrelandIsraelItalyJapanKazakhstanKyrgyzstan Korea (Democratic People’s Republic of)Korea (Republic of)KuwaitLatviaLebanonLithuaniaLuxembourgMacedoniaMalaysiaMaliMaltaMexicoMoldovaMongoliaMontenegroMoroccoNamibiaNetherlandsNew Zealand

NorwayPhilippinesPolandPortugalQatarSouth AfricaRomaniaSaudi ArabiaSerbia SingaporeSlovakiaSloveniaSpainSri LankaSwedenSwitzerlandSyriaTajikistanThailandTurkeyTurkmenistanUkraineUnited Arab EmiratesUnited KingdomMexicoUnited StatesUzbekistanVenezuelaVietnam

NOTES










SINGAPORE

KEY FEATURES

Competent authority

Inland Revenue Authority of Singapore (‘IRAS’)


Section 8 and 10 of the Transfer Pricing Guidelines (Fourth edition), published by the IRAS on the 12 January 2017.




The acceptance of an APA application is at the discretion of the competent authorities. Bilateral APAs and multilateral APAs are available to:

■ Taxpayers that are Singapore tax residents; and

■ Taxpayers who are not Singapore tax residents but have a branch in Singapore.

Applications must be made in the jurisdiction of residence. Unilateral APAs are available to Taxpayers regardless of whether they are Singapore tax residents.

Taxpayers should only apply for an APA when:

■ there is a genuine motive to obtain certainty for the avoidance of double taxation;

■ the request relates to specific current or future transactions that are not hypothetical;

■ they are certain that the cross-border related party transactions will commence or continue to take place throughout the APA covered period;

■ the incidence of double taxation is certain or highly probable for the fiscal years to be covered;

■ the Taxpayer has robust reasons and TP documentation to support the application; and

■ the Taxpayer has evaluated the suitability of an APA through an in-depth cost benefit analysis of their tax situations.


SINGAPORE (cont’d)

Key deadlines The APA process follows strict timing deadlines, including:

■ Submission of pre-filing materials at least one month prior to the pre-filing meeting;

■ The pre-filing meeting must take place at least nine months before the first day of the fiscal year the APA is intended to cover;

■ The IRAS will indicate whether it is inclined to accept the APA request at least four months before the first day of the APA covered period; and

■ APA application should be submitted within three months of the IRAS indicating that it will accept an APA application.


Filing fee There is no filing fee for bilateral or multilateral APAs. There is an administrative fee for unilateral APAs where related transactions involve a jurisdiction with which Singapore does not have a DTT.


Rollback years are available for two years immediately prior to the covered period for bilateral and multilateral APAs. Rollback availability is based on the merits of the request, given no significant difference in the facts and circumstances for the covered period and for the rollback years. Documentation substantiating this may be requested by IRAS. Unilateral APAs will not be extended to prior years.

Collateral issues Administrative or tax issues subject to legal or judicial proceedings that are relevant to and may affect the outcome of the APA should be addressed and resolved during the APA process. The IRAS is unlikely to deviate from determinations made by Singaporean tribunals or courts.




Overview Taxpayers should initiate a pre-filing meeting with IRAS either directly or through its tax agent. Pre-filing materials must be submitted to IRAS one month prior to the pre-filing meeting and include:

■ the Taxpayer’s name, address, tax identification number, and contact details;

■ type of APA sought;

■ any relevant foreign CA(s);

■ fiscal years intended to be covered under the proposed APA;

■ a brief description of the transactions involved;

■ the related parties to the transactions; and

■ a letter of authorisation (‘LOA’) for the IRAS to discuss with appointed representatives of the Taxpayer on the matters relating to the APA application.

The pre-filing meeting must take place at least nine months before the first day of the fiscal year the APA is intended to cover. The IRAS will indicate whether it is inclined to accept the APA request at least four months before the first day of the APA covered period.







One electronic copy and three hard copies of the APA application should be submitted within three months of the IRAS indicating that it will accept an APA application.

The application must include:

■ the entities covered;

■ the transactions covered;

■ the period covered;

■ the TP method;

■ the agreed arm’s length remuneration for the covered transaction;

■ compensating adjustment rules;

■ critical assumptions; and

■ any other documentation as agreed with the IRAS at the pre-filing stage.

The Taxpayer should submit the application simultaneously with the IRAS and any relevant foreign CA(s).




General Taxpayers should note that the key deadlines for submission of documentation must be strictly observed in order for the APA to cover the fiscal years intended.


Taxpayers must file annual compliance reports to demonstrate compliance with the terms and conditions of the APA together with its income tax returns. There is no fixed prescribed format for filing the report.

Renewal procedure

Taxpayers may request to renew an existing APA following the same process as it did to initiate the existing APA. Any significant changes to the circumstances prevailing when the existing APA was made should be highlighted.



COUNTRY EXPERIENCE

Statistics There were 59 active APA applications during income year 2015-16 and 16 completed applications. The average completion time for bilateral and multilateral APAs was 24 months. The IRAS has had an APA program since 2003.

MAP PROCEDURE

MAP provisions Section 9 of the Transfer Pricing Guidelines (Fourth edition), published by the IRAS on the 12 January 2017.



Albania Australia Austria Bahrain Bangladesh Barbados(IV)

Belarus(IV)

Belgium Brunei Bulgaria Canada China Cyprus Czech Republic Denmark Ecuador(IV)

Egypt Estonia Fiji

Finland France(IV)

Georgia Germany Guernsey(IV)

Hungary India Indonesia Ireland Isle of Man(IV)

Israel Italy Japan Jersey(IV)

Kazakhstan Korea (Republic of)Kuwait Laos(IV)

Latvia Libya




Liechtenstein(IV)

Lithuania Malaysia Malta Mauritius Mexico(I), (IV)

Mongolia Morocco(IV)

Myanmar Netherlands New Zealand Norway Oman Pakistan Panama Papua New Guinea Philippines Poland(IV)

Portugal(VI)

Qatar Romania

RussiaRwanda(IV)

San Marino(IV)

Saudi Arabia Seychelles(IV)

Slovak Republic Slovenia South Africa(IV)

Spain(IV)

Sri Lanka(IV)

Sweden Switzerland(IV)

Taiwan Thailand(IV)

Turkey Ukraine United Arab Emirates United Kingdom Uzbekistan Vietnam

NOTES










SPAIN

KEY FEATURES

Competent authority

Spanish Tax Agency


Article 18(9) of the Corporate Income Tax Law




Both resident and non-resident entities may submit APA applications with proposals regarding:

■ valuation of future transactions between individuals and associated entities; and/or

■ deduction of expenses incurred for support and management services.

Applications from non-resident individuals and legal entities are required to be or plan to be carrying out business transactions in Spain through either:

■ a PE located in Spain; or

■ a resident legal entity.

Key timing requests, deadlines

There is no specific guidance on timing for Taxpayers, however the Spanish Tax Agency has a statutory six month period to resolve an APA application.

APA term limits There is a four year maximum term for an APA.



Rollback is available provided there is not a final settlement of the transaction(s).



Overview Applicants are required to submit a preliminary application containing:

■ identification of the parties;

■ a brief description of the transaction(s) covered; and


SPAIN (cont’d)

■ the basic elements of the intended pricing proposal, including a demonstration of consistency with the arm’s length principle, a description of the TP method, and analysis followed to determine the market value.





The APA application must contain the documentation submitted in the preliminary application, as well as additional information that may be requested by the STA from the Taxpayer.

Language The documentation should be submitted in Spanish. Translations may be requested for non-Spanish language submissions.



General The Spanish Tax Agency follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer is required to report any significant changes in the circumstances on which the APA is based. Taxpayers must annually file together with their tax return a statement describing:

■ related party transaction(s) carried out during the fiscal year applying the APA;

■ prices agreed in the related party transaction(s);

■ description of variations on the economic circumstances, if any;

■ similar transactions to those described in the APA, prices and description of the differences between them; and

■ other information as required by the Spanish Tax Agency.

Renewal procedure

An APA may be renewed through application of an extension application six months before expiry of the existing APA.


SPAIN (cont’d)

COUNTRY EXPERIENCE

Statistics There were 37 APA application requests in 2015 and 16 completed applications. The Spanish Tax Agency has had an APA program since 1995.

MAP PROCEDURE

MAP provisions Regulation on the Mutual Agreement Procedures Concerning Direct Taxation, approved by Royal Decree 1794/2008, of 3 November 2008, and amended by Royal Decree 1558/2012, of 15 November; Royal Decree 634/2015, of 10 July 2015; andRoyal Decree 1021/2015, of 13 November.



AlbaniaAlgeriaAndorra(IV)

ArgentinaArmenia(IV)

AustraliaAustriaAzerbaijan(IV)

BarbadosBelarus(II)

BelgiumBoliviaBosniaBrazilBulgariaCanadaChile(IV)

ChinaColombiaCosta RicaCroatiaCubaCyprusCzech Republic

DenmarkDominican Republic(IV)

East TimorEcuadorEgyptEl SalvadorEstoniaFinland(IV)

FranceGeorgiaGermanyGreeceHong Kong(IV)

HungaryIcelandIndiaIndonesiaIranIrelandIsraelItalyJamaicaJapanKazakhstan


SPAIN (cont’d)


KoreaKuwait(IV)

Kyrgyzstan(II)

LatviaLithuaniaLuxemburgMacedoniaMalaysiaMaltaMexicoMoldovaMoroccoNetherlands(IV)

New ZealandNigeria(IV)

NorwayOman(IV)

PakistanPanamaPeruPhilippinesPolandPortugal(VI)

Romania(IV)

RussiaSaudi ArabiaSenegal(IV)

SerbiaSingapore(IV)

Slovak RepublicSloveniaSouth AfricaSwedenSwitzerland(I)

Tajikistan(II)

ThailandTrinidad and TobagoTunisiaTurkeyTurkmenistan(II)

Ukraine(II)

United Arab EmiratesUnited Kingdom(I), (IV)

United StatesUruguayUzbekistan(II), (IV)

VenezuelaVietnam

NOTES










SWEDEN

KEY FEATURES

Competent authority

Swedish Tax Agency (‘STA’)


Law (2009:1289) on Advanced Pricing Agreements Regarding International Transactions;Regulation (2009:1295) on Advanced Pricing Agreements Regarding International Transactions;Bill 2009/10:17 Advanced Pricing Agreements Regarding International Transactions; andGuidance available on the STA website.




An APA application will only be accepted if the transaction(s) to be covered is considered by the STA to be of a sufficiently complex nature. The STA will make an assessment of the eligibility of the Taxpayer on a case by case basis.

Key deadlines No specific guidance. In practice, the timeline for the APA application process is negotiated with the STA during the pre-filing stage.

APA term limits The APA is valid for a predetermined period of three to five years.

Filing fee The filing fee for a new APA is SEK 150 000 (approx. USD 16,750).


There is no specific guidance on rollbacks, however they may be available on a case by case basis at the discretion of the STA.

Collateral issues Administrative or tax issues that are relevant to and may affect the outcome of the APA should be addressed and resolved at the pre-filing stage with the STA.


SWEDEN (cont’d)


Overview A pre-filing meeting will be conducted with the applicant and the STA unless special reasons imply that such a meeting should not be held. However in practice, it is likely that the STA will be open to allowing pre-filing meetings. If the request for a pre-filing meeting is accepted, the meeting will cover the conditions of a proposed APA, the timeline of the APA application process, and the information and documentation required to be included in the application.





An application for an APA should be sent in in four copies and contains the following:■ the name, billing address, any organisation numbers,

personal number or any equivalent registration numbers, or equivalent foreign numbers for the relevant parties;

■ information regarding which tax years the application concerns;

■ information regarding which jurisdictions will be involved in the;

■ information regarding any foreign APA that cover the entities in the applications and if this APA concerns similar transactions as the Swedish APA application;

■ a description of the parties to the APA and their respective organisation and business;

■ information regarding the nature and scale of the transactions;

■ a functional analysis;■ a comparative analysis;■ a description of the chosen TP method;■ justification for the chosen TP method and its feasibility;

and■ information regarding the assumptions and conclusions

that form the basis of the chosen TP method.


SWEDEN (cont’d)

Language No specific guidance. In practice English is accepted for bilateral and multilateral APAs.



General The STA follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must notify the STA without undue delay if any circumstances arise that the assumptions and conditions in the APA are no longer valid. Details regarding what should be included in the notification are settled on a case by case basis.

Renewal procedure

There is no specific regulation for renewal of an APA. It is at the discretion of the STA to adapt its procedure to take into consideration an application for an APA that is already in existence. The filing fee for a renewal application is SEK 100,000 (approx. USD 11,170).

COUNTRY EXPERIENCE

Statistics There were 11 active APA application requests in 2015 and three completed applications. The average completion time was 36 months for bilateral and multilateral APAs. The STA has had an APA program since 2010.

MAP PROVISIONS



SWEDEN (cont’d)



AlbaniaAndorraAnguillaAntigua & Barbuda(IV)

ArgentinaArubaAustraliaAustriaAzerbaijan(IV)

BahamasBahrain(IV)

Bangladesh(IV)

BarbadosBelarusBelgiumBelize(IV)

BermudaBoliviaBosnia-HercegovinaBotswanaBrazilBritish Virgin IslandsBulgariaCanadaCayman IslandsChileChinaCook IslandsCosta Rica(IV)

CroatiaCyprus

Czech RepublicDenmarkEgyptEstoniaFaeroe IslandsFinland France GambiaGeorgia(IV)

Germany(VIII)

GibraltarGreeceGreenlandGrenada(IV)

GuernseyHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapan(I), (IV)

JerseyKazakhstanKenya



Korea (Republic of)KosovoKuwaitLatviaLebanonLiberia(IV)

Liechtenstein(IV)

LithuaniaLuxembourgMacao(IV)

MacedoniaMalaysia MaltaMarshall Islands(IV)

Mauritius(IV)

MexicoMonacoMontenegroMontserrat(IV)

NamibiaNetherland AntillesNetherlandsNew ZealandNigeria(IV)

NorwayOmanPakistanPanama(IV)

PhilippinesPolandPortugal(VI)

Qatar(IV)

Romania RussiaSaint Kitts & NevisSaint Lucia(IV)

Samoa(IV)

San Marino Saudi Arabia(IV)

SerbiaSeychelles(IV)

SingaporeSlovakiaSloveniaSouth AfricaSpainSri LankaSt Vincent & The Grenadines Switzerland(IV)

Taipei(III)

TanzaniaThailandTrinidad & TobagoTunisiaTurkeyTurks & Caicos IslandsUkraineUnited Kingdom(I), (IV) United StatesUruguayVenezuelaVietnamZambiaZimbabwe

SWEDEN (cont’d)


NOTES









SWEDEN (cont’d)


SWITZERLAND

KEY FEATURES

Competent authority

State Secretariat for International Financial Matters (‘SIF’), and cantonal tax authorities (‘Tax authorities’)


There are no specific APA provisions/guidance under Swiss domestic law. The legal foundations for the APA process are the MAP provisions contained in the relevant Swiss DTTs.





Key deadlines An application for an APA can be submitted at any time, including after an audit.

APA term limits There is a five year maximum term for an APA. Longer or shorter periods may be covered depending on the complexities and critical assumptions involved. Bilateral and multilateral APAs may be extended through negotiation with the relevant foreign CA(s).










SWITZERLAND (cont’d)



For bilateral and multilateral APAs, the ‘Request for Mutual Agreement Procedures (MAP)/Advance Pricing Agreements (APA) regarding Transfer Pricing’ application form available on the SIF website should be submitted to the SIF and include the following information:

■ the Swiss and foreign entities and/or PE(s) involved;

■ financial years intended to be covered;

■ type(s) of transaction intended to be covered;

■ foreign CA(s) with which SIF should negotiate;

■ TP method and demonstration of application; and

■ collateral issues.




General The Tax authorities follow a standard pre-filing, application and monitoring process. There are no unique procedural aspects.



Renewal procedure


COUNTRY EXPERIENCE


MAP PROCEDURE






AlbaniaAlgeriaArgentinaArmeniaAustralia(I), (IV)

AustriaAzerbaijanBahrainBangladeshBarbadosBelarusBelgiumBulgariaCanada(I)

ChileChina(IV)

ColombiaCroatiaCyprusCzech RepublicDenmark(I)

EcuadorEgyptEstoniaFinlandFranceGeorgiaGermany(I)

GhanaGreeceHong Kong(I), (IV)

Hungary(IV)

IcelandIndia

IndonesiaIranIrelandIsraelItalyIvory CoastJamaicaJapanKazakhstanKenyaKorea (Republic of)KuwaitKyrgyzstanLatviaLebanonLiechtensteinLithuaniaLuxembourg(I)

MacedoniaMalaysiaMaltaMexicoMoldovaMongoliaMontenegroMoroccoNetherlands(I)

New ZealandNorwayOmanPakistanPeruPhilippinesPoland(I)




Portugal(VI)

QatarRomaniaRussiaSaudi ArabiaSingapore(IV)

Slovak RepublicSouth AfricaSpain(I)

Sri LankaSweden(IV)

TajikistanThailand

Trinidad and TobagoTunisiaTurkeyTurkmenistanUkraineUnited Arab EmiratesUnited Kingdom(I)

United StatesUruguayUzbekistan VenezuelaVietnam

NOTES










THAILAND

KEY FEATURES

Competent authority

The Revenue Department (‘the Revenue’)


Guidance on the APA process, available on the Revenue’s website.


Bilateral APAs are available.



Key deadlines Taxpayers must submit a written document of intent for a pre-filing meeting at least six months prior to the last day of the first accounting period that the APA aims to become effective. Furthermore, APA applications must be submitted to the Revenue within the last day of the first accounting period intended to be covered by the APA.







Overview Taxpayers must submit a written document of intent for a pre-filing meeting to the Director-General of the Revenue at least six months prior to the last day of the first accounting period that the proposed APA is to become effective. The objective of the pre-filing meeting is to:

■ discuss the reason for the APA application;

■ submit pre-filing documentation;

■ discuss the documents required to be included in the APA application;

■ discuss the filing date of the APA application; and

■ discuss ways to minimise the time taken to process the APA application.


THAILAND (cont’d)

Pre-filing documents must be submitted at least 15 days prior to the pre-filing meeting. Pre-filing documents include:

■ name and address of taxpayer seeking APA;

■ accounting period of the entity and the relevant transactions;

■ structure and relationship of the related parties;

■ details of business revenue account showing all transactions;

■ detailed analysis of assets and risks of all transactions;

■ detailed analysis of the structure of industries and their market share; and

■ TP method chosen for the APA and explanation of the selection.





Taxpayers must submit a written document of intent (a form to be published by the Revenue) and required documents to the Revenue within the last day of the first accounting period intended to be covered by the APA. Required documents include:

■ the name and address of the taxpayer seeking the APA;

■ the accounting period intended to be covered and the relevant transactions;

■ the organisational structure and relationship of the related entities;

■ details of business revenue accounts showing all transactions;

■ a detailed analysis of assets and risks of all transactions;

■ the TP method chosen for the APA and explanation of the selection;

■ a benchmarking study of comparables;

■ the critical assumptions;

■ the history and status of any audits; and

■ any other relevant documents requested by the Revenue.Five hard copies of each document and one electronic copy must be submitted to the Revenue.


THAILAND (cont’d)

Language The documentation must be submitted in both Thai and English.



General While the Revenue follows a standard pre-filing, application and monitoring process, it should be noted that documentation is required to be submitted in in both Thai and English.


There is no specific guidance on post-agreement filing procedures. The timeframe for annual report submission will be provided in a written notice from the Revenue at the conclusion of APA.

Renewal procedure


COUNTRY EXPERIENCE

Statistics Statistics on APAs have not been made publicly available. The Revenue has had an APA program since 2010.

MAP PROCEDURE




ArmeniaAustraliaAustriaBahrainBangladeshBelarusBelgiumBulgariaCanadaChileChinaCyprusCzech RepublicDenmark

Estonia(IV)

FinlandFranceGermanyHong KongHungaryIndia(IV)

IndonesiaIreland(IV)

Israel ItalyJapanKorea (Republic of)Kuwait


THAILAND (cont’d)


LaosLuxembourg MalaysiaMauritiusMyanmarNepalNetherlandsNew ZealandNorwayOmanPakistanPhilippinesPolandRomaniaRussiaSeychelles

Singapore(IV)

SloveniaSouth AfricaSpain Sri LankaSwedenSwitzerlandTaipei(III), (IV)

Tajikistan(IV)

Turkey UkraineUnited Arab EmiratesUnited KingdomUnited StatesUzbekistanVietnam

NOTES










UKRAINE

KEY FEATURES

Competent authority

State Fiscal Service of Ukraine (‘SFSU’)


Paragraph 39.6 of the Tax Code of Ukraine; and Order of the Cabinet of Ministers of Ukraine dated July 17 2015, No. 504 ‘On conclusion of advance pricing agreements in respect of controlled transactions for transfer pricing purposes’ (‘APA Procedure’).




Only large Taxpayers can apply for the APA. ‘Large Taxpayers’ are defined as Ukrainian entities or PEs of a non-resident Taxpayer that meet one of the following criteria:

■ an amount of income for 4 consecutive quarters exceeds UAH 1 billion (approx. USD 38 million); or

■ amount of payments to state budget for 4 consecutive quarters exceeds UAH 20 million (approx. USD 755,000).

Key deadlines There are no deadlines for the submission of early engagement or APA requests. The SFSU has 60 calendar days to respond to early engagement requests. There are no specific timeframes for completion of the APA procedure after submission of an APA application to the SFSU.





Collateral issues Administrative or tax issues which are relevant for APA must be addressed with the SFSU during the pre-filing stage and are subject to mutual agreement between the parties.


UKRAINE (cont’d)


Overview Taxpayers may request a preliminary feasibility assessment from tax authorities (‘early engagement’), during which they can clarify the feasibility of an APA and ensure proper preparation of documents and materials required for the APA application. In order to apply for early engagement Taxpayers should send a request to SFSU containing the following information:

■ purpose of the request;

■ name of the Taxpayer;

■ code of the Taxpayer in the Unified State Register of Enterprises and Organisations of Ukraine;

■ representative of the Taxpayer which will take part in early engagement, including their position, full name, phone number, e-mail address, and documents confirming the authority to represent the Taxpayer;

■ substance and actual facts of the controlled transaction(s) covered under the proposed APA;

■ business activities of the related parties to the controlled transaction(s) and jurisdiction(s) of tax residency of the related parties;

■ information on the related parties, including an organisational structure of the group; and

■ other information which Taxpayer considers relevant.

During early engagement the SFSU will arrange a meeting with the Taxpayer. Within 60 calendar days after submission of the request the SFSU will notify the Taxpayer in writing the results of the SFSU’s preliminary feasibility assessment.


Anonymous pre-filling is not available.


UKRAINE (cont’d)



An APA application must be accompanied with the following documents:

■ transfer pricing documentation as required by the Tax Code of Ukraine;

■ copies of the constituent documents of the Taxpayer;

■ accounting records and financial statements of the Taxpayer for the last three reporting periods (years);

■ description of any current tax disputes which relate to subject of the APA;

■ documentation that confirms tax residency of non-resident related party;

■ description of any implications from DTTs between Ukraine and the country of tax residency of the related party on subject of the APA;

■ results of analysis of the possible impact of the APA on tax obligations of parties to the controlled transaction(s);

■ copies of any APA application(s) that the related party has filed in any other jurisdiction(s);

■ copy of the document which confirms the authority of the Taxpayer’s representative(s) to take part in the APA application process on its behalf; and

■ proposals regarding procedure, terms, and a list of documents which will confirm the Taxpayer’s compliance with the APA terms.

Language The APA application, supporting documentation and materials should be prepared in Ukrainian. Any documents which are prepared in foreign languages must be translated into Ukrainian. In the case of bilateral and multilateral APA applications, all documentation provided must also be translated into English.

SME provisions APAs are only available to entities considered Large Taxpayers (as defined above).


UKRAINE (cont’d)


General The SFSU follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


Taxpayers with APAs must submit an annual report on performance under APA by May 1 of the year following the reporting year. Form and content of such report is established by respective APA. Conclusion of APA does not exempt the Taxpayer from requirement to submit report on controlled transactions on an annual basis under the general procedure.

Renewal procedure


COUNTRY EXPERIENCE

Statistics As of April 2017 no APAs have been concluded in the Ukraine.

MAP PROCEDURE

MAP provisions Chapter 10 of Section 2 of the Tax Code of Ukraine.




AlgeriaArmenia AustriaAzerbaijan Belarus Belgium Brazil Bulgaria Canada China Croatia Cyprus(IV)

Czech Republic Denmark Egypt Estonia Finland

FranceGeorgia Germany Greece Hungary Iceland India Indonesia Iran Ireland(IV) IsraelItaly(IV)

JapanJordan KazakhstanKorea (Republic of) Kuwait

UKRAINE (cont’d)




Kyrgyzstan LatviaLebanon Libya LithuaniaLuxembourg Macedonia Malaysia Mexico(IV)

MoldovaMongolia Montenegro Morocco Netherlands(I)

Norway PakistanPoland Portugal Republic of Cuba Romania Russia

Saudi Arabia(IV)

Serbia SingaporeSlovakiaSlovenia South Africa Spain(II)

Sweden Switzerland SyriaTajikistan Thailand Turkey Turkmenistan United Arab Emirates United Kingdom United States Uzbekistan Vietnam

NOTES









UKRAINE (cont’d)


UNITED KINGDOM

KEY FEATURES

Competent authority

HM Revenue and Customs (‘HMRC’)


Sections 218-230 of the Taxation (International and Other Provisions) Act 2010 (‘TIOPA’); and HMRC Statement of Practice 2 (2010) (‘SP2/10’); and HMRC Guidance INTM422000 et seq.




APA applications are more likely to be successful if:

■ the transfer pricing issues are complex, and uncertainty exists as to how the arm’s length standard should be applied;

■ HMRC consider negotiating the APA a good use of its resources; or


APAs must be bilateral rather than unilateral except where the other party to the transaction(s) is resident in a jurisdiction with which the United Kingdom has no double taxation treaty, the treaty partner has no APA process, or HMRC considers there is little to be gained by seeking a bilateral agreement.

Key deadlines There is no specific guidance. Negotiations between the Taxpayer and HMRC during the pre-filing stage will determine the date from which the APA will commence.




Rollback is available on a case by case basis after HMRC’s consideration of the relevant facts and circumstances. In bilateral cases, the decision will also depend on the ability or willingness of the relevant foreign CA(s).

Collateral issues The nature of any current transfer pricing enquiries, HMRC claims, and any other relevant issues, including the potential of the United Kingdom’s diverted profits tax to apply to the covered transactions should be raised with HMRC at the pre-filing stage.


UNITED KINGDOM (cont’d)


Overview At least one ‘expression of interest meeting’ with HMRC is recommended to discuss:

■ the nature of the transfer pricing issues intended to be covered by an APA;

■ details of the tax residence of the parties involved and importance to the wider business of the transactions covered; and

■ a description of the proposed TP method.





The application should set out:

■ the applicant’s understanding of the effect of the relevant legislation and DTT(s) in relation to the relevant transfer pricing issues;

■ the areas where clarification of that effect are required; and

■ a proposal for clarifying the effect of the legislation in accordance with the applicant’s understanding. All proposals need to be supported by:

– identification of the parties and accounts for previous three years;

– description of the transfer pricing issues proposed, analysis of the functions and risks, and actual and projected financial data of the parties;

– description of the global group structure, and major categories of transaction flows of the relevant parties;

– description of records to be maintained in support of proposed TP method and information demonstrating the Taxpayer’s tax returns will conform to the APA’s terms;



– description of any current tax enquiries or HMRC claims relevant to issues covered by the proposed APA;

– chargeable periods to be covered by the APA;

– identification of assumptions made in developing the proposed TP method critical to the reliability of its application under the arm’s length standard;

– analysis of the diverted profits tax position in respect of the covered transactions and any transactions directly connected to them;

– any current or expired rulings issued by a foreign tax authority; and

– where appropriate, a request for HMRC assistance in reaching a bilateral or multilateral APA.


SME provisions Certain SMEs are exempt from United Kingdom’s transfer pricing legislation.


General HMRC follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must provide an ‘Annual Report’ accompanying its business tax return for the duration of the APA. Details as to what should be included in the Annual Report are provided on a case by case basis.

Renewal procedure

Applications for the renewal of APAs are required to be submitted lodged six months before expiry.

COUNTRY EXPERIENCE

Statistics There were 67 APA application requests in 2015 and 37 completed applications. The average completion time was 21 months. HMRC has had an APA program since 1999.

MAP PROCEDURE

MAP provisions Section 124 of the TIOPA.





Albania(I), (IV)

Algeria(I), (IV)

Argentina Armenia(I), (IV)

Australia Austria Azerbaijan Bahrain(I), (IV)

Bangladesh Barbados(IV)

Belarus Belgium Bolivia Bosnia-Herzegovina BotswanaBritish Virgin IslandsBulgaria(IV)

Canada(I)

Cayman IslandsChile China(IV)

Croatia(IV)

Cyprus Czech Republic Denmark Egypt Estonia

Ethiopia(IV)

Falkland Islands Faroe IslandsFiji Finland France(I)

Gambia GeorgiaGermany(I)

Ghana Guernsey Guyana Hong KongHungaryIceland(I), (IV)

India Indonesia Ireland Isle of Man IsraelItaly Ivory Coast Japan(I), (IV)

Jordan Kazakhstan Kenya Korea (Republic of)




Kosovo(I), (IV)

Kuwait Latvia LesothoLibyaLiechtenstein(I), (IV)

Lithuania Luxembourg MacedoniaMalaysiaMalta Mauritius Mexico MoldovaMongolia Montserrat Morocco Netherlands(I)

New Zealand Nigeria Norway(I), (IV)

Oman Pakistan Panama(IV)

Papua New Guinea Philippines Poland Portugal Qatar(I) Romania

Russia Saudi Arabia Senegal(IV)

Singapore Slovenia South Africa Spain(I), (IV)

Sri Lanka Sudan Swaziland Sweden(I), (IV) Switzerland(I)

Taiwan Tajikistan(I), (IV)

Thailand Trinidad and Tobago Tunisia Turkey Turkmenistan(IV)

Uganda Ukraine United Arab Emirates(IV)

United States Uruguay(I), (IV)

Uzbekistan Venezuela Vietnam Zambia(IV)

Zimbabwe



NOTES










KEY FEATURES

Competent authority

Advance Pricing and Mutual Agreement office (‘APMA’), under the Large Business and International (‘LB&I’) Division of the Internal Revenue Service (‘IRS’)1.


Revenue Procedure 2015-41 (‘Rev Proc 2015-41’); and Guidance available on the APMA website.





Key deadlines A Taxpayer is required to file an APA request within the time prescribed for filing its federal income tax return for the first proposed APA year. For bilateral and multilateral APAs, requests must be filed no later than 60 days after the corresponding request has been filed with the foreign CA(s).

APA term limits Taxpayers are encouraged to propose terms covering at least five prospective years.

Filing fee General fee USD 60,000 Renewal fee USD 35,000 Small cases fee USD 30,000


An APA may cover one or more rollback years. Taxpayers should include a rollback request as part of this APA request. APMA may consider implementing a rollback even in the absence of a request. APMA will not agree to cover a closed filed year with a rollback of a unilateral APA request except in unusual circumstances.

Collateral issues Any open back years of the Taxpayer under examination by the IRS must be identified in a pre-filing memorandum. A member of the IRS examination team involved in the Taxpayer’s case will be involved in any APA negotiations with APMA.

1 Ultimate authority is delegated to the Deputy Commissioner of the LB&I Division of the IRS.

UNITED STATES


UNITED STATES (cont’d)


Overview APMA may require the Taxpayer to meet in a pre-filing conference and submit a pre-filing memorandum. Taxpayers may also request a pre-filing conference or choose to submit a pre-filing memorandum. Pre-filing memoranda are recommended for APA requests that may present novel or complex substantive or procedural issues, and requests for which APMA could reasonably have concerns regarding interrelated matters. Mandatory pre-filing memoranda must include:

■ whether a pre-filing conference is sought and issues the Taxpayer wishes to discuss and three possible dates for the conference at least two weeks after submission of the memorandum;

■ covered issue diagrams;

■ name and contact information of the Taxpayer, and authorisation for the Taxpayer’s representatives and points of contact to inspect or receive confidential tax information; and

■ identification of all open back years and which, if any, are under investigation by the IRS.

Both optional and mandatory pre-filing memoranda must be accompanied by an ‘APMA Pre-file conference request’ form, available on the IRS website.

APMA will notify the Taxpayer whether it will accept or decline a request to hold a pre-filing conference, and may require a conference even where one has not been requested.






Content of an APA application

APA requests must contain a request letter, as well as the following 22 ‘exhibits’:

■ Contents of exhibits – provide a table or similar comprehensive list of the exhibits submitted, indicating the form in which they have been submitted;

■ Authorisation forms – for representatives of the Taxpayer (e.g., an enrolled agent, lawyer or certified public accountant), and/or for those authorised to inspect or receive confidential information about the Taxpayer;

■ Protective claim – for bilateral or multilateral APAs, a statement affirming whether the request is to serve as a protective claim;

■ Waiver of ex parte communication – if the APA involves rollback years, a waiver of the Taxpayer’s right to be present during communications between the IRS Appeals and the APMA team;

■ Consent to disclosure – for disclosure of an APA request to any applicable foreign CA(s);

■ Consents regarding period of limitations – any executed consents to extend the period of limitations for assessment of tax;

■ ‘Penalties of perjury’ declaration – a declaration signed by the Taxpayer that the APA request and supporting documentation contains all relevant facts, and that such facts are true, correct and complete;

■ User fee receipt – obtained after paying required APA user fee;

■ Documents submitted to foreign competent authorities – a list of all documentation or written submissions provided to a foreign CA(s) in connection with the APA request;

■ Pre-filing submissions – any pre-filing memoranda submitted in connection with the APA request;



■ Covered issue diagrams – including the controlled group’s legal structure, tax structure, business units, the value chain of the proposed covered group, and organisational charts;

■ APAs – the most recent APA, if any, that the Taxpayer has entered into with the IRS or foreign CA(s);

■ Selection process – a report on results of applying criteria for selecting comparable agreements or independent comparable companies or other market data, including tables or matrix showing reasons for rejecting agreements, independent companies or other market data;

■ Information on selected comparables – a detailed discussion of the contractual terms of selected comparable agreements, as applicable;

■ Proposed draft APA – submitted in a form similar to APMA’s current model APA (available on the APMA website or on request) and a ‘redline’ version of the same showing the differences between the model APA and the proposed draft APA;

■ Application of APA template – for APA requests that involve an application of the comparable profits method or the transactional net margin method, provide income statement data for the previous five taxable years and balance sheet data for the previous six taxable years for the relevant members of the proposed covered group, using the template provided by the IRS;

■ Federal income tax filings – Forms 1120, 5471, 5472, 8858 for each of the three most recent filed years of the Taxpayer;

■ Financial statements – full income statements, balance sheets, cash flow statements for the most recent three back years, specifying accounting standard used;

■ Section 6662 documentation – documentation prepared in consideration of the transfer pricing penalty under IRC s 6662(e) for each relevant member of the proposed covered group for each of the most recent three back years;



■ Regulatory filings – Securities and Exchange Commission filing by the controlled group for each of the most recent three back years;

■ APA annual reports – for renewal requests only; and

■ Intercompany agreements – copies of intercompany contracts or agreements between the Taxpayer and other members of the covered group within the scope of the covered issues.


SME provisions To be eligible for a small cases APA:

■ sales revenues must be less than USD 500 million in each of most recent three tax years;

■ the aggregate value of the proposed covered issue(s) cannot be expected to exceed USD 50 million in any given year for the duration of the APA;

■ the aggregate value of any transfer of rights in, or rights to use, intangibles cannot be expected to exceed USD 10 million in any given year for the duration of the APA; and

■ no proposed covered issue can involve intangible property arising from, or otherwise relate to, and intangible development arrangement.

Taxpayers that are eligible for the small cases APA may submit a complete APA request together with the fee, or may contact APMA to discuss filing an abbreviated APA request.




General APMA follows a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


The Taxpayer must provide an annual report for the duration of the APA, demonstrating compliance with the APA terms and conditions, and any adjustments. The report must be filed with APMA by the later of (i) the 15th day of the 12th month following the close of the APA year, or (ii) 90 days after the effective date of the APA. APMA may require the following documentation in an annual report:

■ a statement regarding any material differences between business operations during the APA year and the description of business operations contained in the APA request;

■ a statement concerning any material changes to the Taxpayer’s accounting methods and classifications, and methods of estimation from those described in the APA request;

■ any changes to the Taxpayer notice information;

■ a description of any failure to meet critical assumptions;

■ a statement identifying whether or not any material information submitted while the APA request was pending is discovered to be false, incorrect or incomplete;

■ the amount, reason for, and financial analysis of any compensating adjustments for the APA year;

■ the amounts, description, reason for, and financial analysis of any book-tax difference relevant to the TP method for the APA year;

■ a statement regarding whether the Taxpayer intends to request a renewal, modify or cancel the APA;

■ financial statements, analysis and accounting details to demonstrate compliance with the TP method;

■ an organisational chart;

■ a copy of the APA and any amendments; and

■ a penalty of perjury statement.



Renewal procedure

Taxpayers may seek renewal of an APA, and the renewal process generally follows the same process as APA requests unless the IRS permits the submission of an abbreviated APA request. An abbreviated APA request may be filed if the Taxpayer can show that the applicable law, facts and circumstances, economic conditions, proposed covered issues and methods and other relevant factors are reasonably expected to be substantially the same as those in the proposed renewal APA years.

COUNTRY EXPERIENCE

Statistics There were 398 pending APA applications and 86 executed applications during the 2016 tax year. The average completion time was 50.5 months for bilateral APAs and 33.9 months for unilateral APAs. The IRS has had an APA program since 1991.

MAP PROCEDURE

MAP provisions Revenue Procedure 2015-40 (‘Rev Proc 2015-40’)



Armenia Australia Austria Azerbaijan Bangladesh Barbados Belarus Belgium(I)

Bulgaria Canada(I)

China Cyprus Czech Republic Denmark Egypt EstoniaFinland

France(I)

Georgia Germany(I)

Hungary IcelandIndia Indonesia Ireland(I)

IsraelItaly(I)

Jamaica Japan Kazakhstan(I)

Korea (Republic of)Kyrgyzstan Latvia Lithuania



LuxembourgMaltaMexico(I)

Moldova Morocco NetherlandsNew ZealandNorwayPhilippinesPoland Portugal(VI)

Romania Russia Slovak Republic Slovenia

South Africa Spain Sri Lanka SwedenSwitzerlandTajikistan Thailand TrinidadTunisia Turkey Turkmenistan Ukraine United Kingdom Uzbekistan Venezuela


NOTES










VIETNAM

KEY FEATURES

Competent authority

The Minister of Finance or his authorised representative (‘Tax authorities’)


Circular No. 201/2013/TT-BTC





Key deadlines There is no specific guidance on timing requests or deadlines. The Taxpayer will negotiate a timeline for the APA application process during the pre-filling stage.




Rollback is not available to prior years.



Overview A consultation before the formal filing of an APA application is required with the Tax authorities to determine the suitability of an APA. Taxpayers must include the following with its request for consultation:

■ Form 1/APA-TV;

■ the name and address of the Taxpayer, and names and addresses of parties to the related transaction(s);

■ the type of APA sought;

■ any relevant foreign jurisdiction(s) that will be party to the negotiations;

■ a description of the related transaction(s) to be covered and not covered (if any) by the APA and an explanation for their inclusion, or exclusion;

■ the value of the related transaction(s);


VIETNAM (cont’d)

■ the desired duration of the APA;

■ an analysis of the functions, assets, and risks during the business of the Taxpayer and related parties to the transaction(s) covered;

■ the proposed TP method including comparables, benchmarking, calculation methods, arm’s length range, and adjustments of material differences (if any);


■ general information on enterprises, such as the business scope and size, the Taxpayer’s controlled transactions, provision and exchange of information about and on operation of business groups (e.g., industry, capital, structure, business size) and its associated parties relevant to the controlled transaction(s) to be covered by the APA;

■ organisational structure;

■ a summary of any tax audits;

■ disclosure of whether any APAs have been concluded with any other foreign jurisdiction(s) or similar covered APA transactions;

■ positions of any relevant foreign CA(s);

■ a proposed timeline for the APA application process, and forms of communication; and

■ any other information or documentation relevant to the APA application or as requested by the Tax authorities.

The Tax authorities will notify the Taxpayer within 30 working days from the last pre-filing meeting the outcome of the pre-filing consultation.




VIETNAM (cont’d)



Taxpayers must submit a formal APA application to the Tax authorities within 120 days of receiving written approval after the pre-filing consultation (a 30 day extension is possible in certain circumstances).

The APA application must include the following:

■ Form 2/APA-CT;

■ information about the Taxpayer and parties to the related transaction(s) covered by the APA;

■ the name and address of the Taxpayer, and names and addresses of parties to the related transaction(s), including any foreign CA(s);

■ tax codes of the Taxpayer and addresses of business locations;

■ information about the primary lines of business of the Taxpayer and related parties;

■ type of related transaction(s), scope and the covered period intended under the APA;

■ the related transaction(s) covered and not covered (if any) under the APA and an explanation for their inclusion, or exclusion;

■ value of the related transaction(s);

■ the type of APA sought;

■ general information about the Taxpayer and organisation including a brief history, business model, and organisational structure;


VIETNAM (cont’d)

■ a description of the group’s value chain and the position of the related transaction(s) covered by the APA in that value chain;

■ a detailed description of the transaction flow related to the transaction(s) covered by the APA and similar related transactions made in other jurisdictions (if any);

■ the capital structure, associated relationship (including but not limited to direct or indirect investments, loans, and the ratio of investment among the partners);

■ characteristics of business activities and main business areas of associated parties;

■ a description of the business strategy of the corporation and any impact on the Taxpayer;

■ a description of the business strategy intended to be employed by the Taxpayer during the covered period, including a business plan for the period of five years following the APA application, and performance over the previous three years;

■ an analysis of the Taxpayer’s industry and tendencies that might affect the business of the Taxpayer;

■ detailed functions, risks and assets analysis of the Taxpayer and any associated party to the APA including allocation of resources and facilities if shared by associated parties (for assets including IP or intangibles, it is necessary to state clearly the ownership, usage, any protection status, IP registration date, and the value of intangibles in price settings of goods/services covered by the APA);

■ financial statements including any audits, annual reports and enterprise income statements from the three years prior to filing the APA application;

■ proposed TP method, the source of data and information used for comparable analysis and, calculation method of product prices, gross profitable ratios, and profit level indicators related to the controlled transaction(s) covered by the APA;


VIETNAM (cont’d)


■ information on the settlement of corporate income tax in any relevant foreign jurisdiction(s) and the relationship between the domestic laws and relevant DTT provisions;

■ copies of any existing APAs with foreign CA(s) for similar covered APA transaction(s);

■ copies of any contracts or other legal agreements between the Taxpayer and related parties that affect the transaction(s) covered by the APA, including agreement on ownership, rights of usage, sale, distribution of services, and development studies; and

■ copies of any existing APAs with foreign CA(s) for similar covered APA transaction(s);

■ copies of any contracts or other legal agreements between the Taxpayer and related parties that affect the transaction(s) covered by the APA, including agreement on ownership, rights of usage, sale, distribution of services, and development studies; and

■ any other information or documentation relevant to the APA application or as requested by the Tax authorities.

Three copies of the APA application must be submitted to the Tax authorities. The Tax authorities shall notify the Taxpayer of the outcome within 90 days of receiving the formal APA application. The tax authorities may extend the evaluation stage by no more than 60 days and notify the Taxpayer in writing if such an extension is required. The Tax authorities may request to carry out a site-visit of the Taxpayer’s premises during the evaluation of the APA application.


VIETNAM (cont’d)

Language The documentation for unilateral APAs should be submitted in Vietnamese. For bilateral and multilateral APA applications, documentation should be submitted in Vietnamese with English translations.



General The Tax authorities follow a standard pre-filing, application and monitoring process. There are no unique procedural aspects.


Taxpayers are required to submit an APA annual report together with their annually final statement of corporate income tax. Taxpayers with an APA will be subject to an APA compliance audit, but will be exempted from a transfer pricing audit.

Renewal procedure

Taxpayers may extend an existing APA for up to five additional years. An application for extension must be submitted at least six months before expiry of the existing APA.

COUNTRY EXPERIENCE

Statistics Statistics on APAs are not publicly available. The Tax authorities have had an APA program since 2014.

MAP PROCEDURE

MAP provisions There are no specific provisions for the MAP procedure in domestic law. Taxpayers must rely on the MAP provisions under DTTs.


VIETNAM (cont’d)



AustraliaBelgiumBulgariaCanada(IV)

ChinaCzech RepublicDenmarkFranceFinlandGermanyHong KongHungaryIcelandIndiaIndonesiaIrelandItalyJapan

Korea (Republic of)LuxembourgMongoliaNetherlandsNew Zealand(IV)

NorwayPhilippinesPolandPortugalRomaniaRussiaSingaporeSpainSwedenSwitzerlandThailandUkraineUnited Kingdom

NOTES











DLA PIPER CONTACTS BY COUNTRY

Joel CooperCo-Head International Transfer Pricing T +44 207 796 6929 M +44 773 829 5470 [email protected]

Randall FoxCo-Head International Transfer Pricing T +44 207 796 6928 M +44 773 8295 935 [email protected]

AUSTRALIA

Jock McCormackPartner T +61 2 9286 8253 [email protected]

AUSTRIA

Franz Althuber Partner T +43 1 531 78 1124 [email protected]

BELGIUM

Gregory Komlosi Lead Lawyer T +32 02 500 1514 [email protected]

CANADA

Max Weder Counsel T +1 604 643 6370 [email protected]

CHINA

Windson Li Partner T +852 2103 0740 [email protected]

COLOMBIA

Felipe Ospina Acosta Partner T +57 1 317 4720 115 [email protected]

DENMARK

Artur Bugsgang Partner T +45 33 34 00 06 [email protected]

FINLAND

Jaakko Klemettila Senior Counsel T +358 9 4176 0435 [email protected]


LUXEMBOURG

Geoffrey Scardoni Partner T +352 26 29 04 43 34 [email protected]

GERMANY

Dr Konrad Rohde Country Managing Partner T +49 69 271 33 340 [email protected]

MEXICO

Abelardo Acosta Partner T +57 1 317 4720 115 [email protected]

HONG KONG

Todd Wang Counsel T +852 2103 0539 [email protected]

NEW ZEALAND

Lynette Smith Special Counsel T +64 9 300 3812 [email protected]

ITALY

Antonio Tomassini Partner T +39 02 806 18 525 [email protected]

NETHERLANDS

Clive Jie-A-Joen Transfer Pricing Director T +31 20 541 9279 [email protected]

INDIA

Rachit Agarwal (London based) Transfer Pricing Director T +44 20 7153 7105 [email protected]

FRANCE

Guillaume Valois Partner T +33 1 40 15 66 33 [email protected]

JAPAN

Makiko Kawamura Partner T +81 3 4550 2815 [email protected]


PORTUGAL UKRAINE

Antonio Moura Portugal Partner T +351 21 358 36 20 [email protected]

Illya Sverdlov Legal Director T +380 44 490 9575 [email protected]

ROMANIA

Tudor Nedelea Partner T +40 372 155 815 [email protected]

UNITED KINGDOM

Joel Cooper Co-Head International Transfer Pricing T +44 20 7796 6929 [email protected]

RUSSIA

Ruslan Vasutin Partner T +7 812 448 7200 [email protected]

UNITED STATES

Randall Fox (London based) Co-Head International Transfer Pricing T +20 7796 6928 [email protected]

SPAIN

Carlos Rodriguez Partner T +34 91 788 7369 [email protected]

Mike Patton Partner T +1 310 595 3199 [email protected]

SWEDEN

Erik Bjorkeson Partner T +46 8 701 78 89 [email protected]

THAILAND

Chanvitaya Suvarnapunya Partner T +662 686 8552 [email protected]

POLAND

Aleksandra Kozlowska Senior Associate T +48 22 540 74 07 [email protected]

PERU

Dr Francisco Botto Partner T +511 6161200 [email protected]

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