2. A specific tax control procedure has been introduced for controlled transactions: for transactions for which an application for an APA has been filed and refused, the time to initiate a review is calculated from the date of the decision to refuse the application (and, for the following two years, from the date of such a decision). In addition, the time frames for which controlled transactions can be controlled will be increased from 3 to 5 years. Starting in 2008, APA applications must be submitted before the start of the fiscal year in which the APA is applying. Several informal pre-consultation meetings with NTA auditors are usually required before an application is formally adopted. According to NTA reports, the APA`s bilateral applications have an average processing time of between 2 and 3 years. It takes much longer to get a multilateral APA. The filing of an APA return by the subject does not stop a transfer pricing check if it is already in progress. The purpose of the APA is to determine the tax debt between two or more states for a specified period of time. The partners in the advanced transfer pricing procedure are therefore the contracting states concerned. However, the applicant is regularly informed of the status of the procedure and the status of the procedure.
5. Eliminate the need to submit documents that are already in the possession of the tax authorities (as part of the review of an application for an APA). 1. Ensure the correct application of Article 105.14 of the Russian Tax Code for commercial transactions in ferrous metals, mineral fertilisers and precious stones, in order to eliminate discrepancies between the conditions for notification of controlled transactions covered in paragraph 2 of paragraph 1 and Article 105.14 of the Russian tax code. As a result, commercial commercial transactions involving the aforementioned product categories and carried out with independent parties may be controlled when the corresponding TNVED (International Business Classification) codes are introduced, in accordance with the mission of the Russian Ministry of Industry and Trade of 28 April 2018, No. 1714. Based on the DGT`s written statement, there are several APA submission conditions that have changed. First, the filing of the APA can now be made directly through a formal request and there is no need for a pre-notification procedure. In fact, the completeness of the documents can now be filed after the notification, which states that the application can be continued. On 27 March 2020, the Russian Ministry of Finance published an updated version of the bill “On the amendment of the first part of the Russian tax code to improve price tax control and the procedure for concluding advanced price agreements” (hereafter the “Bill”).
An APA is a solution for taxpayers seeking maximum security in compensation prices for future years. Our transfer pricing professionals can facilitate and support the entire APA process: the applicant determines the content of the APA in his application. The application must define the scope of both time and substance. In addition, it is worth mentioning the other countries with which a pre-agreement on transfer pricing is to be concluded. If an applicant requests a multilateral APA (with more than two participating states), the APA consists of several bilateral APAs. Because APAs are forward-looking, their mandate usually begins at the beginning of the fiscal year in which the formal application is made.