Advance Pricing Agreement Pdf

Competence of the BZSt in the settlement procedure, arbitration and APAs After signing the prior consent agreement with the foreign state(s), the BZSt informs the applicant in writing of the result and asks for approval of the content of the contract. In addition, the applicant is invited to waive his right to lodge a complaint with the tax authorities. As soon as the applicant has agreed to the content and waived his right of appeal, the tax office gives the applicant the corresponding binding prior undertaking to implement the transfer pricing display at the federal level. Companies that want to avoid imminent economic double taxation can apply for an APA. In Germany, the Bundeszentralamt für Steuern (BZSt) is the competent authority for the implementation of these procedures. Applications for the introduction of an APA can therefore be addressed directly to the BZSt. The double taxation agreement is available on the website of the Federal Ministry of Finance. Upon receipt of the application, the BZSt verifies that all conditions (including the applicant`s agreement not to contest the fees) are met for the implementation of an PA procedure. An APA procedure shall only be implemented if the request is admissible and reasoned.

APAs – in the sense mentioned above – find their legal basis in the respective double taxation conventions (SAAs), in the respective articles on mutual agreement procedures. Germany has concluded DTAs with more than 90 countries around the world. Most of these DTAs follow the OECD`s draft international agreement. The provisions on mutual agreement procedures are set out in Article 25(1) to (3) of the OECD Model Agreement. When an applicant requests a multilateral ABS (with more than two participating states), the PA consists of several bilateral ABS. Fact sheet on bilateral or multilateral pre-contractual procedures The APA aims to define the tax liability between two or more states for a given future period. Interested parties are therefore parties to the advanced transfer pricing process. However, the applicant shall be regularly informed of the progress of the procedure.

Declaration of consent of the applicant to the Bundeszentralamt für Steuern (paragraph 4.6, second sentence of the APA Circular) The circular contains detailed information on how APAs are carried out in Germany. The application for an APP should be submitted simultaneously in Germany (by the German undertaking concerned) and abroad (by the foreign undertaking concerned). .

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