Worldwide transfer pricing reference guide 2014

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Romania (continued) APA opportunity (continued) By means of an APA, the ANAF approves the specific transfer pricing method utilized by a multinational entity prior to the actual transaction. APAs are binding on the tax authority as long as their terms and conditions are observed by taxpayers. Unilateral APAs are issued for a term of 12 months, while bilateral and multilateral APAs are issued for a term of 18 months. The fees payable to ANAF for issuance or amendment of an APA are: • EUR20,000 (issuance), EUR15,000 (amendment) — in case of large taxpayers or for agreements on transactions with a consolidated value exceeding EUR4 million • EUR10,000 (issuance), EUR6,000 (amendment) — in all other cases As a general rule, APAs are issued for a period of up to five years; however, this term may be extended in certain cases. Expected reaction to OECD Report on BEPS Romanian tax authorities should also refer to the transfer Pricing Guidelines set by OECD when analyzing related party transactions. Thus, the OECD developments on transfer pricing matters (including those mentioned above) will normally be followed for Romanian purposes by tax authorities and tax payers. It is difficult to assess at this stage the extent of the implementation in the Romanian legislation of the results of such developments. Nevertheless, increased transfer pricing audit activity is expected. Worldwide transfer pricing reference guide 252
Russian Federation Taxing authority and tax law Taxing authority: The Federal Tax Service of the Russian Federation (FTS). Tax law: Federal Law No. 227-FZ, effective from 1 January 2012 (Law 227). Relevant regulations and rulings Law 227 reduces the types of transactions subject to transfer pricing control by focusing more on related party transactions and includes only certain types of third-party transactions. In relation to cross-border transactions, the following will be subject to transfer pricing control: • All related party transactions (no threshold) • Third-party transactions involving goods traded on global commodity exchanges such as oil and oil products, ferrous metals, non-ferrous metals, fertilizers, precious metals and precious stones if the annual income, as a result of all transactions between the parties, exceeds RUB60 million (approximately US$1.7 million) 1 • Third-party transactions where the counterparty is located in a certain jurisdiction (same threshold as above) 2 In the domestic market, only related party transactions can be subject to transfer pricing control, and a RUB60 million (approximately US$1.7 million) threshold applies for the following transactions: • The subject of the transaction is an object of assessment to mineral extraction tax calculated at an ad valorem tax rate Or • One of the parties to the controlled transaction is exempt from paying profit tax, or pays tax at 0% rate Or • One of the parties to the controlled transaction is registered in a special economic zone (such transactions will be controlled from 2014) or • Transactions where one of the parties operates drilling/holds license to explore oil & gas deposits on continental shelf (subject to several additional criteria) For all other domestic related party transactions, a RUB3 billion (approximately US$86 million) 3 threshold applies in order for them to become subject to transfer pricing control. Also, there will be certain domestic transactions of this type that are exempt from transfer pricing control; e.g., transactions between members of a domestic consolidated group of taxpayers, or if the following criteria are met: • Both parties are registered within the same region of Russia • None of the parties have economically autonomous subdivisions in other regions of Russia nor pay income tax to the budgets of other regions • None of the parties have tax losses • There are no other grounds for the transaction to be controlled (same criteria which are applicable for the RUB60 million threshold outlined above) Related parties The definition of related parties is broadened and the transfer pricing law includes a list of criteria defining when companies and individuals can be declared related parties. The main criterion defining the relationship remains the same, being the ownership threshold; i.e., if one party directly or indirectly controls more than 25% (the previous threshold was 20%) of another party. Courts can declare companies and/or individuals to be related on any other grounds, if it is proven that the relationship between the parties influenced the terms and the results of the transactions. 1 1 US$ is equal to 35 RUBs. 2 The list of jurisdictions is determined by the Ministry of Finance. 3 This amount will be reduced to RUB1 billion in 2014. Worldwide transfer pricing reference guide 253
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Worldwide Transfer Pricing Referenc
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Worldwide transfer pricing referenc
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Nigeria 215 Norway 217 Oman 220 Pak
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The content is current as of 28 Feb
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CUP (comparable uncontrolled price)
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Albania (continued) Priorities/pric
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Algeria Taxing authority and tax la
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Algeria (continued) Return disclosu
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Angola (continued) Transfer pricing
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Argentina Taxing authority and tax
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Argentina (continued) Transfer pric
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Australia Taxing authority and tax
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Australia (continued) Priorities/pr
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Australia (continued) Documentation
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Australia (continued) Frequency of
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Austria (continued) Documentation r
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Bahrain Taxing authority and tax la
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Bangladesh (continued) Penalty reli
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Belgium Taxing authority and tax la
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Belgium (continued) Statute of limi
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Bolivia Taxing authority and tax la
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Botswana Taxing authority and tax l
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Brazil (continued) Relevant regulat
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Brazil (continued) Priorities/prici
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Brunei Taxing authority and tax law
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Bulgaria (continued) Transfer prici
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Bulgaria (continued) Return disclos
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Cameroon Taxing authority and tax l
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Canada Taxing authority and tax law
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Canada (continued) Documentation re
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Chile Taxing authority and tax law
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Chile (continued) Return disclosure
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China (continued) Documentation req
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Colombia Taxing authority and tax l
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Colombia (continued) Penalty relief
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Republic of Congo Taxing authority
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Costa Rica Taxing authority and tax
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Croatia Taxing authority and tax la
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Croatia (continued) Frequency of ta
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Czech Republic Taxing authority and
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Denmark Taxing authority and tax la
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Denmark (continued) Documentation d
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Dominican Republic Taxing authority
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Dominican Republic (continued) Expe
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Ecuador (continued) Priorities/pric
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Ecuador (continued) Return disclosu
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Egypt Taxing authority and tax law
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Egypt (continued) Frequency of tax
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El Salvador (continued) Transfer pr
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Estonia Taxing authority and tax la
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Fiji Taxing authority and tax law T
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Fiji (continued) Frequency of tax a
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Finland (continued) Documentation r
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France (continued) Transfer pricing
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France (continued) Documentation re
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France (continued) Expected reactio
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Gabon (continued) Transfer pricing-
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Georgia (continued) Documentation r
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Germany Taxing authority and tax la
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Germany (continued) For late filing
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Ghana Taxing authority and tax law
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Ghana (continued) APA opportunity T
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Greece (continued) Transfer pricing
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Guatemala Taxing authority and tax
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Honduras Taxing authority and tax l
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Hong Kong (SAR) Taxing authority an
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Hong Kong (SAR) (continued) APA opp
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Hungary (continued) Priorities/pric
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Hungary (continued) Documentation r
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Iceland Taxing authority and tax la
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India Taxing authority and tax law
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India (continued) Documentation req
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Indonesia Taxing authority and tax
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Indonesia (continued) Frequency of
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Ireland Taxing authority and tax la
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Ireland (continued) Frequency of ta
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Israel (continued) Priorities/prici
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Italy Taxing authority and tax law
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Italy (continued) Transfer pricing
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Italy (continued) Frequency of tax
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Japan (continued) Transfer pricing
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Japan (continued) APA opportunity U
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Kazakhstan Taxing authority and tax
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Kazakhstan (continued) Frequency of
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Kenya (continued) Documentation req
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Kosovo (continued) Documentation re
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Kuwait (continued) Documentation re
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Latvia Taxing authority and tax law
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Lebanon Taxing authority and tax la
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Lithuania Taxing authority and tax
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Luxembourg Taxing authority and tax
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Former Yugoslav Republic of Macedon
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Malaysia Taxing authority and tax l
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Malaysia (continued) Frequency of t
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Maldives (continued) Statute of lim
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Malta (continued) Return disclosure
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Mauritius (continued) APA opportuni
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Mexico (continued) Transfer pricing
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Mexico (continued) Return disclosur
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Montenegro (continued) Frequency of
Page 201 and 202: Morocco (continued) Transfer pricin
Page 203 and 204: Myanmar Taxing authority and tax la
Page 205 and 206: Namibia Taxing authority and tax la
Page 207 and 208: Netherlands Taxing authority and ta
Page 209 and 210: Netherlands (continued) Statute of
Page 211 and 212: New Zealand Taxing authority and ta
Page 213 and 214: New Zealand (continued) Frequency o
Page 215 and 216: Nigeria Taxing authority and tax la
Page 217 and 218: Norway Taxing authority and tax law
Page 219 and 220: Norway (continued) Frequency of tax
Page 221 and 222: Oman (continued) Frequency of tax a
Page 223 and 224: Panama Taxing authority and tax law
Page 225 and 226: Panama (continued) Expected reactio
Page 227 and 228: Papua New Guinea (continued) Docume
Page 229 and 230: Peru Taxing authority and tax law T
Page 231 and 232: Peru (continued) Frequency of tax a
Page 233 and 234: Philippines (continued) Transfer pr
Page 235 and 236: Poland Taxing authority and tax law
Page 237 and 238: Poland (continued) Transfer pricing
Page 239 and 240: Poland (continued) Return disclosur
Page 241 and 242: Poland (continued) APA opportunity
Page 243 and 244: Portugal (continued) Transfer prici
Page 245 and 246: Portugal (continued) APA opportunit
Page 247 and 248: Qatar (continued) OECD guidelines t
Page 249 and 250: Qatar (continued) Return disclosure
Page 251: Romania (continued) Documentation r
Page 255 and 256: Russian Federation (continued) Freq
Page 257 and 258: Saudi Arabia (continued) Transfer p
Page 259 and 260: Senegal (continued) Documentation r
Page 261 and 262: Serbia Taxing authority and tax law
Page 263 and 264: Singapore Taxing authority and tax
Page 265 and 266: Singapore (continued) Frequency of
Page 267 and 268: Slovak Republic (continued) Documen
Page 269 and 270: Slovenia Taxing authority and tax l
Page 271 and 272: Slovenia (continued) Transfer prici
Page 273 and 274: South Africa (continued) Penalty re
Page 275 and 276: South Korea (Republic of Korea) Tax
Page 277 and 278: South Korea (Republic of Korea) (co
Page 279 and 280: Spain (continued) Penalty relief So
Page 281 and 282: Spain (continued) APA opportunity T
Page 283 and 284: Sri Lanka (continued) Return disclo
Page 285 and 286: Sweden (continued) Documentation re
Page 287 and 288: Switzerland Taxing authority and ta
Page 289 and 290: Taiwan Taxing authority and tax law
Page 291 and 292: Taiwan (continued) Return disclosur
Page 293 and 294: Tanzania Taxing authority and tax l
Page 295 and 296: Thailand Taxing authority and tax l
Page 297 and 298: Thailand (continued) Frequency of t
Page 299 and 300: Turkey (continued) Priorities/prici
Page 301 and 302: Uganda Taxing authority and tax law
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Ukraine Taxing authority and tax la
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Ukraine (continued) Transfer pricin
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United Kingdom Taxing authority and
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United Kingdom (continued) Transfer
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United States (continued) Transfer
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Uruguay Taxing authority and tax la
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Uruguay (continued) APA opportunity
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Venezuela Taxing authority and tax
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Venezuela (continued) Expected reac
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Vietnam (continued) Relevant regula
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Vietnam (continued) Documentation d
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Zimbabwe Taxing authority and tax l
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Zimbabwe (continued) Relevant regul
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Transfer pricing contacts Area cont
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Jurisdiction contacts • El Salvad
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Jurisdiction contacts • Rep. of C
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Worldwide transfer pricing reference guide 2014

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