Mutual Agreement Procedure Russia
The relevant authorities can then communicate during the negotiation phase. Communication between the relevant authorities can be made either in writing or in person. If the relevant authorities reach a mutual agreement on a given APA, the agreement is formalized by a written document. Procedures for mutual agreement are incorporated into the tax code The instrument of the Mutual Agreement Procedure (MAP) has always been available to settle cases of double taxation with 84 countries that have effective double taxation agreements (TTDs) with Russia. However, until last year, few cases of POPs had been introduced in Russia, mainly because there was not enough transparency and ineffective mechanisms. – the VAT payment procedure is intended for the trade in real estate and fixed warehouses. The introduction of POPs into Russian tax legislation has in recent years continued a general trend towards international taxation and the adoption of BEPS initiatives by the Russian government and the Federal Finance Service (FTT). On 1 May 2019, Russia ratified a multilateral instrument (MLI) that commits to meeting minimum requirements for all signatories. On May 3, 2018, guidelines were published to define the process for concluding bilateral and multilateral ex ante price agreements (AAP) that provided a practical framework for the management of the APP with the participation of one or more foreign tax authorities. – the subject has the right to request a counter-reciprocity procedure from the Ministry of Finance of the Russian Federation3 if he believes that the tax treatment of the tax income, profits or property of the subject is contrary to the provisions of the DTT or, before the expiry of a period of three years from the date of entry into force of the law of the tax authorities , which, in the taxpayer`s view, leads to such a disparity; Please note that mutual agreement procedures may be initiated not only by the taxpayer, but also by the competent authorities of the foreign country with which Russia signed the double taxation agreement. On 17 March 2017, the Russian Ministry of Finance (MoF) issued a draft decision on the procedure for concluding bilateral pre-price agreements (AAA) with authorized agencies of foreign states.
This draft regulation fills a legal gap in Russian management of transfer pricing rules and contractual obligations with foreign states. Although the conclusion of APA in the Russian tax code (notably by Article 105.20, point 2, of the Russian tax code) has been general since 2012 for the principals subject, only this proposal for a decision has introduced the procedure for concluding bilateral APA.