The Danish and the Chinese tax authorities have just concluded negotiations for their first bilateral advance pricing agreement (BAPA). It is also the first such agreement between Europe and China.
A BAPA is an agreement between the tax authorities of two nations determining the transfer price and the criteria for the controlled transactions between two related parties in a group for a fixed period of time. The BAPA application relating to the concluded negotiations between China and Denmark was filed in August 2008 and the negotiations were only just concluded.
Director General of the Danish tax authority, Ole Kjaer, states: 'This agreement is a cornerstone in the commercial relation between Denmark and China. Denmark is already negotiating their second BAPA with China, and, hopefully, agreements like this will help ease the pain of the current financial crisis. Furthermore, such agreements resolve actual or potential transfer pricing disputes in advance. In this way, companies obtain a higher level of certainty in relation to international taxation.'
So far, Denmark has concluded ten BAPAs, of which three have been concluded in 2009. Another ten BAPAs are currently being negotiated.
This comprehensive report in our Intelligence Report series examines the global and national landscapes in which companies can use transfer pricing to improve their after-tax returns, including summaries of recent developments in design of the corporate supply train, the usefulness of 'offshore' in international corporate tax planning, and a section covering the spread of DTAAs and CFC laws. It is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report16.asp
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment