6. The possibility of extending the provisions of an APA to a period ranging from the first day of the calendar year during which the subject first applied for an APA until the APA came into force if, after reviewing the first application, an APA was refused on the grounds that no agreement was reached between the tax authorities of a foreign counterpart. Overall, this draft contract is a positive step in the evolution of Russian transfer pricing practices. Bilateral APAs are increasingly sought after by taxpayers seeking certainty about their transfer pricing policy, particularly in the current international tax environment. Technically, the bilateral APP procedure is initiated by submitting a formal application in the prescribed form, accompanied by all the necessary documents. The MoF has compiled a recommended list of necessary documents that taxpayers must provide. In addition to general information on the group`s companies, controlled transactions and financial performance, the documents to be provided must contain information on the results of the application of the proposed pricing method, taking as an example the last three years for which factual information is available. A pre-price agreement (APA) is a prior agreement between a tax payer and a tax authority on an appropriate transfer pricing method (TPM) for a number of transactions involved during a specified period[1] (“covered transactions”). 2.

Allow the subject to enter into a unilateral APA if the Russian and foreign tax authorities do not reach a mutual agreement after consideration of a draft APP. 5. Conclusion of the APA: at this stage, the subject must inform the FTT of his consent (disagreement) with the FTT decision in a manner that he chooses. If such a notification is not made within 30 days of receiving the decision, the subject is deemed to disagree with the decision. 3. The period during which an APA can be considered must be significantly extended when dealing with foreign tax authorities. The new period is 24 months from the date an application is made. However, this cooling-off period may also be extended to 27 months, but may be suspended for periods during which foreign tax authorities submit documents as part of the DTT`s mutual agreement procedure.