The applicant shall determine the content of the PA in his application. The application must define the scope of application, both in time and in substance. In addition, mention should be made of other countries that require advance pricing reporting. When an applicant requests a multilateral ABS (with more than two participating states), the PA consists of several bilateral ABS. Are pre-sales agreements with the tax authorities possible in your area of expertise? If so, what form do they usually take (e.g. B unilaterally, bilaterally or multilaterally) and which companies and transactions can they cover? We will now focus on the relationship between Germany and India with regard to transfer pricing disputes and how they have developed over time. Recently, companies from both countries have developed their trade relations. India, one of the fastest growing economies in the world, offers many opportunities for German companies, which is why more than 1700 German companies are now active in India. Investment by Indian companies in Germany has also increased remarkably in recent years.
Indian companies have invested more than €6.5 billion in Germany, including in the IT, automotive, pharmaceutical and biotech sectors. Today, more than 200 Indian companies are active in Germany. There are more than 1600 Indo-German cooperations and more than 600 Indo-German joint ventures in operation. Inevitably, the number of transfer pricing disputes has continued to increase in recent years in both countries. The DBA between India and Germany presented an article (Article 25) which presented a mutual agreement procedure (MAP). However, at the end of 2017, India was not accepting bilateral POPs and DPAs. This is due to the absence of the corresponding adjustment clause in the DBAA between India and Germany. However, this situation changed when India announced in November 2017 that bilateral pop and APP applications would be accepted, regardless of whether the corresponding adaptation clause was included in the DBAA.
This change in India is a great opportunity for the companies of the two lawyers who are currently suffering from double taxation. It is possible to clarify past tax issues and/or obtain a guarantee in the tax treatment in the coming years. In general, APIs are available to taxpayers protected by a corresponding double taxation convention, in particular with regard to transfer pricing issues (e.g. B fees, tolls and commission remuneration). The applicant must have a legitimate interest in the APP. In principle, any transfer pricing case for internationally related parties can be covered by an ABS. The details of the concrete case are usually discussed at the pre-filing meeting. Yes, Advance Pricing Agreements (APAs) with tax authorities are usually bilateral, but can sometimes be multilateral. . .