AAAs – in the aforementioned sense – find their legal basis in the Double Taxation Conventions (DBA), in the respective articles on mutual agreement procedures. Germany has concluded DBA with more than 90 countries in the world. Most of these DBAs follow the OECD`s draft international agreement. The provisions on mutual agreement procedures are set out in Article 25, paragraphs 1 to 3, of the OECD Model Convention. Upon receipt of the application, the BZSt verifies that all conditions (including the applicant`s agreement not to challenge the fees) for the execution of an APP procedure are met. An APP procedure is only implemented if the application is admissible and justified. At the request of the subject, all information necessary to resolve the case must be provided. The content of the required information varies from case to case. EU recommendations and OECD guidelines on transfer pricing provide guidance on the content of this information. In the statement, the subject must describe how the chosen transfer pricing method indicates that future transactions are accounted for along the length of the arms. On 27 March 2020, the Russian Ministry of Finance published an updated version of the bill „On the amendment of the first part of the Russian tax code to improve price tax control and the procedure for concluding advanced price agreements“ (hereafter the „Bill“). Preliminary decisions by the Finnish tax administration or the central tax office do not eliminate the risk of international double taxation. The question of how a transaction made by related parties is handled in the context of the imposition of the other party remains unresolved in these decisions.
On the other hand, the process of negotiating an APA between two or more states can be lengthy and will not necessarily lead to an agreement. 4. Changing the procedure for deadlines: the time to review an APP application is proposed along with other related documents from the date the application is filed (this period is now calculated from the day the application is submitted, with all the corresponding documents). This change reduces the risk of delays in the APA closing process. The bill aims to optimize the procedure for concluding advanced price agreements (`APA`) in order to define the conditions under which transactions can be considered controlled and to introduce other specific amendments to the provisions of the Russian tax code. The Bundeszentralamt for Steuern generally collects a fee of 20,000 euros for the processing of an APA application.