advance pricing agreement

advance pricing agreement. Tax. A usu. binding arrangement made between a multinational company and one or more national tax authorities about what method the company will use to calculate transfer prices. • The agreement’s purpose is to reduce or eliminate double taxation. — Abbr. APA.

bilateral advance pricing agreement. An advance pricing agreement made between a company and two tax authorities.

multilateral advance pricing agreement. An advance pricing agreement made between a company and more than two tax authorities.

unilateral advance pricing agreement. An advance pricing agreement made between a company and one tax authority. • This does not necessarily allow a company to avoid double taxation. A tax authority that is not a party to the agreement is not bound by the transfer-pricing method specified in the agreement.

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词条贡献者

双语律师Andrew，欧洲名校国际税法专业，擅长翻译各类与国际税法相关的法律文件。