An APA provides a tool to avoid transfer pricing disputes. The experience of taxpayers and tax authorities with respect to pre-price agreements has shown that the best way to resolve complex transfer pricing issues for all parties is to cooperate before the problem becomes a problem. Finding a solution is usually more difficult. 2. The formal filing of an application by the subject for the inclusion of an APA in cross-border transactions. 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. It is recommended that APA be compiled as soon as possible. The time required to process the application must also be taken into account. In line with EU recommendations, the application should be processed within 18 months. In practice, processing times are much longer. This observation is based on EU statistics (which also contain unilateral APAs from individual states and preliminary decisions).

The tax exercises covered by the APA are defined separately in the APA between the relevant authorities. The Pre-pricing Program (APA) is an important part of our compliance assurance strategy. An APA can be achieved through the pricing of transactions between parties linked to different countries of residence. All parties applying for aPA must have as a country of residence a state party to a tax treaty. The pre-price agreement is between the states and the taxpayer is not a party to the agreement. The competent authorities of the States concerned are the negotiating partners of the APP procedure. The OECD has published guidelines for the APA as part of its transfer pricing guidelines (see OECD guidelines on transfer pricing for multinational companies and tax administrations, 2010, Chapter IV, Section F and Chapter IV annex). In accordance with OECD transfer pricing guidelines, APA negotiations are based on Article 25 of the OECD Model Tax Convention.

In October 1999, the OECD published an update of the OECD guidelines on clearing prices for multinational companies and tax administrations in 1995 (the so-called “guidelines”). This update takes the form of a new schedule to the guidelines, which contains guidelines for the implementation of ex ante price agreements as part of the Mutual Agreement Procedure (MAP-APAs). The annex is an integral part of the guidelines, as evidenced by the OECD Council`s decision of 28 October to amend its original recommendation on the 1995 guidelines to include the new guidelines in this annex. It therefore has the same status as the eight existing chapters of the guidelines. The operation of the APA may depend on compliance with certain requirements and compliance with certain critical assumptions. If you have done so, we will be administratively bound by the provisions of the APA and we will not collect additional income tax on the basis of prices developed by the APA for covered cross-border transactions. 3. Review of the application by the FTT, which leads to one of the following decisions: bilateral and multilateral APAs are generally bilateral or multilateral, i.e. they also enter into agreements between the subject and one or more foreign tax administrations under the Mutual Agreement (MAP) procedure defined in income tax agreements.

[3] The subject benefits from such agreements, since he is assured that income from covered transactions is not subject to double taxation on the part of the IRS and the relevant foreign tax authorities.