Advance Agreement Deutsch

In its application, the applicant determines the content of the APA. The application must define the scope of both time and substance. In addition, it is worth mentioning the other countries with which a pre-agreement on transfer pricing is to be concluded. If an applicant requests a multilateral APA (with more than two participating states), the APA consists of several bilateral APAs. Following the signing of the pre-price agreement with the State or foreign countries, BZSt informs the applicant in writing of the result and asks him to approve the content of the agreement. In addition, the applicant is asked to waive his right of appeal to the tax office. Once the applicant has agreed to the content and waived his right of appeal, the tax office grants the applicant the corresponding mandatory prior obligation to implement the pre-transfer prices at the national level. 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.

According to Germany, an advance pricing agreement (APA) is a combination of a pre-agreement between states on transfer pricing between internationally linked companies and prior cancellation. By entering into GPAs, participating states establish, in advance, transfer pricing methods equivalent to the external comparison between related companies or related entities for a specified period of time. This is an administrative procedure that is subject to an application. Companies that wish to avoid the threat of double economic taxation in advance can apply for an APA. In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. Applications to open an APA can therefore be filed directly with the BZSt. The purpose of the APA is to determine the tax debt between two or more states for a specified period of time. The partners in the advanced transfer pricing procedure are therefore the contracting states concerned.

However, the applicant is regularly informed of the status of the procedure and the status of the procedure. Information sheet on the bilateral or multilateral pre-agreement procedures BZSt`s competence on mutual agreement, arbitration and APAs procedures – in the aforementioned sense – its legal basis is found 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. Responsibility for the implementation of the APA is carried out by the Bundeszentralamt (BZSt). The relevant tax office issues the mandatory requirement for the German applicant. Here are the models of applicants` declarations that the applicant must submit to the authorities after the signing of the pre-price agreement.