E Pluribus Unum - Out of Many, One

In addition, a company may require a pre-price agreement (APA) from the Luxembourg tax authorities. The fee is 3,000 euros to 10,000 euros (depending on the complexity of the issue). As of January 1, 2019, only domestic transactions between Russian companies with different corporate tax rates or special tax regimes will be subject to transfer pricing rules and will only be subject to transfer pricing rules if the revenues (or costs incurred) from these transactions with related persons exceed RUB 1 billion per year. Assuming that the agreements will be used before 2015 beyond the 2019 fiscal year, it would be appropriate to discuss in due course with Luxembourg`s tax advisers. It should be noted that requests for “replacement agreements” as set out in the draft 2020 budget are unlikely to be dealt with more favourably by the Luxembourg tax authorities than those relating to matters that had not been the subject of prior agreement. Conversely, the mere spillover of the pre-2015 agreement does not mean that the treatment in question is no longer valid in itself if the current tax legislation supports treatment under a pre-2015 agreement. The principle of arm length should be applied to compensation prices between related parties. Tax payers should establish and retain transfer pricing documents at the same time to demonstrate that the transactions of their related persons are made on a poor basis when the value of the transactions exceeds certain de minimis amounts. In December 2017, Russia passed the Differentiated Transfer Pricing Approach Act, in line with the OECD`s BEPS 13 action plan. Luxembourg legislation offers the possibility of obtaining a decision from the Luxembourg tax authorities, which includes transfer pricing judgments (e.g.B. pre-price agreement or APA).

Most APAs are unilateral and deal with the tax treatment of transactions involving taxable companies in Luxembourg. There are no restrictions on businesses and transactions that can be covered by an APA. This is not unexpected, given that these tax rulings have been limited to a five-year period since the introduction of a new procedure at the end of 2014. In practice, the benefits of previous tax rulings will generally be limited, as they have only been protected when they are in compliance with national, European and international law, which has generally evolved considerably in the meantime. The arm`s length principles generally apply to transactions between related companies, in accordance with Romanian law. Romanian rules are, in many ways, similar to OECD guidelines, with some differences. For transactions with persons linked to annual values exceeding certain thresholds, specific transfer pricing documents should be drawn up by Romanian residents of corporate tax. The transfer pricing regimes applied by the Chilean tax authorities are in line with OECD standards. The documentation of transfer pricing on the basis of OECD transfer pricing guidelines (master file, local file, national report) must be prepared in accordance with the Austrian transfer pricing documentation law and submitted to the Austrian tax authorities. The size of the documentation required depends on a company`s turnover.

All pre-tax agreements before January 1, 2015 will no longer automatically have legal value from the end of fiscal year 2019. Taxpayers expressly have the right to make new applications for advance tax rulings that are processed in accordance with the revised procedure of the tax authorities in force since 1 January 2015.


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