Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘unilateral APA’

Portugal: Unilateral APA opportunities

Portugal has introduced new transfer pricing rules, including the ability to request a unilateral APA, absent a tax treaty between Portugal and the other jurisdiction.  KPMG has provided a concise summary for these changes:

http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/taxnewsflash/Pages/2014-1/portugal-transfer-pricing-law-changes-allow-more-unilateral-apa.aspx

Multinationals should consider this new provision to obtain additional certainty re: Portugal’s application of transfer pricing rules.  Recognizing that a unilateral APA does not eliminate the risk of double taxation, this opportunity should be reviewed within the context of the global tax risk framework.

 

Strategizing APA’s in Turkey & OECD’s Tax Transparency Report

KPMG has published an informative and timely publication reviewing strategies for the use of unilateral, bilateral  and multilateral Advance Pricing Agreements (APA’s), with a detailed focus on recent APA developments in Turkey.  The KPMG publication cites the OECD’s June 2013 report “A Step Change in Tax Transparency” prepared for the G8 Summit.  The KPMG and OECD reports are referenced herein for review.

Click to access turkey-feb3-2014.pdf

Click to access taxtransparency_G8report.pdf

The KPMG report is a valuable reference, providing strategic insight into using unilateral, bilateral and / or multilateral APA’s globally with a specific focus on Turkey.  The report includes chapters on Transfer Pricing in Turkey, Global APA Trend, Opportunities that APA Offers, When Should You Pursue an APA and the APA Process in Turkey.  The OECD report provides additional input on the exchange of information which is especially valuable against the backdrop of OECD’s recent request for guidance.

The transfer pricing landscape is changing, from a OECD perspective and also separate country initiatives that may, or may not, correlate with guidelines to be established this year and next by the OECD.  Accordingly, the use of APA’s should be reconsidered for developed and developing countries to achieve further certainty and avoidance of double taxation in these changing and challenging times.

%d bloggers like this: