Mutual Agreement Procedure Pwc

11. April 2021

Advice and assistance in case of inspection, agreed settlement procedures and tax disputes related to transfer pricing, including your representation before the relevant judicial and administrative authorities. Support and support the negotiation procedures for bilateral and multilateral ex ante price agreements (AAS) with tax authorities. KREMa must not cover penalties resulting from previous adjustments that have led to double taxation. However, when a unilateral decision by the competent authority is taken or an agreement is reached between the two competent authorities under an MAP, the sanctions are subject to the corresponding conditions in the KSA. The introduction of a POP avoids the cumbersome formal rules, which generally govern intergovernmental communication, and allows effective communication between competent authorities who strive to reach an agreement and avoid the intervention of lengthy litigation. In August 2020, the Central Council on Direct Taxes (CBDT) issued guidelines for the Mutual Agreement Procedure (MAP), which includes the following four parts: the MAP article of the Indian Agreement on Income Tax is based on Article 25 of the OECD Convention Model. An application for a POPs may be made by a taxpayer if it takes into account the actions of the tax authorities of one or both contractors or results in a tax that does not comply with the applicable tax treaty. This procedure allows the competent authorities of the contracting states to settle disputes or difficulties in interpreting or applying tax treaties on a consensual basis. The purpose of POPs is to reduce double taxation, which is generally the result of transfer pricing cases, and to resolve treaty-related tax disputes and issues related to the interpretation or application of a double taxation agreement. The MAP provides a bilateral mechanism for designated representatives (the „competent authorities“) to negotiate with each other to resolve the underlying tax issue. Help verify the consistency of your business model with your Intercompany pricing system in order to identify and reduce the potential risks associated with your transfer pricing policy, respecting an approach based on current international developments. help develop, formalize and implement transfer pricing policies. POP cases are confidential in KSA.

GazT`s POP policies also state that all information obtained through the MAP process is subject to strict confidentiality requirements. In KSA, a map process can be initiated at the same time as other domestic litigation. However, when an application for POPs is made by the subject, the domestic appeal/recourse procedure is suspended until the outcome of the POP is established. What tax issues can be resolved under the POP? 3. While the POP is important for the proper application and interpretation of tax treaties, it has proven to be a widespread mechanism for resolving transfer pricing disputes. Examples of questions posed by the subjects for the settlement of the POP application cover the following (but not limited) cases: mutual assistance in resolving international transfer pricing disputes. 9. Do POPs in the KSA cover penalties and interest (delay penalties) from adjustments? A taxpayer can apply for a POP if he or she believes it is taxed or taxed, not in accordance with a tax treaty, and when such a tax results in double economic or legal taxation. To assist in the development of a group-wide set of transfer pricing documents, based on a coordinated comprehensive approach that also meets local needs while maintaining efficiency from a cost management perspective. PwC TLS Avvocati e Commercialisti has formed a multidisciplinary, committed and specialized team with more than 20 years of industry experience to effectively address transfer pricing issues.