Advance Pricing Agreement Italia

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Over the past three years, requests to activate the special interpello procedure (ruling) of companies with international activities have increased sharply. Indeed, international companies that decide to define in advance with financial management their tax position in terms of transfer pricing, interest, dividends and royalties have increased considerably. On 22 March 2018, the tax authorities stated in a press release that they wished to provide details on transfer pricing and the criteria for correct price quantification. The press release states that tax rulings are agreements contrary to international standards contained in the OECD and EU codes; To better understand, tax rulings are tax advances by which states communicate to a company the calculation of corporate tax in that state. With regard to the latest reports from some news agencies, the tax administration points out that the “tax rulings” on which the articles seem to refer are agreements that violate international standards codified at OECD and EU levels, which cannot and have never been concluded by the Italian tax administration. Unfortunately, transfer pricing is often used as an instrument of tax evasion: prices are manipulated to shift the proceeds from the secondment of the multinational to the company of origin in a tax haven where the taxation of profits is more favourable. “First of all, the early knowledge of the level of taxation over a long period of time – which, as confcommercio said – companies for Italy – allows multinationals to have real five-year tax planning. This case is provided for in D.Lgs No. 32 of 15.3.2017, the “prevention agreements for companies with an international activity” falling under Article 31-ter of D.P.R. No. 600 of 29.9.1973. In fact, every entrepreneur wants to know how much tax they will have to pay in the coming years.

In view of the tax burden on Italian companies, this would be fundamental information for their activities. Well, thanks to these agreements, the multinationals get this information – or rather they agree – not the others!. In order to obtain explanations and general explanations on the characteristics of the international judgment, the tax authorities have provided for the possibility of meeting taxpayers (or their representatives) during one or more preventive interviews (pre-tenders). These are informal opportunities that can also take place anonymously, without identifying the taxpayer, and where taxpayer interest is increasing sharply (Table 2). They offer the possibility of dealing with general issues without having the possibility of examining certain cases in detail. Transmission pricing (101 cases out of a total of 134) has been one of the most frequently discussed issues over the past four years; Dividends, interest or royalties with 16 cases. . . .

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