FEDERAL TAX SERVICE APPROVES THE PROCEDURE FOR EXTENDING THE PERIOD FOR CONSIDERATION OF APPLICATIONS FOR CONCLUDING ADVANCE PRICING AGREEMENTS

The Russian Ministry of Justice has registered Order No ММВ-7-13/182@ of the Federal Tax Service of Russia dated 26 March 2012 (the Order), approving the eligible grounds and procedure for extending the period for consideration of applications for signing advance pricing agreements for tax purposes and the accompanying documents and also approving the formats for standard resolutions in connection with conclusion of such agreements.

Generally, an application for conclusion of an APA and the accompanying documents are to be examined within six months of being filed. According to Article 105.22(4) of the Russian Tax Code, this period may be extended up to 9 months, while the grounds and procedure for such an extension are to be established by the Federal Tax Service.

According to the Order, eligible grounds for extending consideration of an application for concluding a pricing agreement include:

• the need to negotiate with a competent government authority of a foreign state,
• consideration of an application that requests signing a multilateral pricing agreement for taxation purposes with related parties (a taxpayer group),
• the taxpayer being required to submit additional documents to confirm compliance of the pricing procedure stipulated in the draft pricing agreement for tax purposes with the relevant transfer pricing legislation requirements,
• the need to verify the completeness and reliability of documents submitted by the taxpayer containing information essential for concluding a pricing agreement for tax purposes,
• force majeure (flood, inundation, fire, etc.) preventing consideration of the application for a pricing agreement and the accompanying documents,
• other circumstances preventing a resolution being adopted with regard to conclusion of a pricing agreement for tax purposes.

The Order also approves standard formats for resolutions on extending consideration of applications seeking conclusion of pricing agreements, resolutions permitting conclusion of pricing agreements, refusing conclusion of pricing agreements and requesting improvement of the draft agreement, as well as resolutions on early termination of an effective agreement