Advance tax certainty for complex tax matters
For businesses with complex or cross-border operations, tax uncertainty can lead to risks, discussions with tax authorities and potential double taxation. An Advance Tax Ruling (ATR), Advance Pricing Agreement (APA) or Bilateral Advance Pricing Agreement (BAPA) can help provide certainty in advance regarding the tax treatment of transactions and structures. Our Tax Controversy & Litigation specialists advise clients on tax disputes and negotiate with tax authorities, both in the Netherlands and internationally.
Through KPMG's Global Transfer Pricing Services network, we have access to the expertise required across multiple jurisdictions worldwide. This enables us to offer our clients a comprehensive range of services and coordinated support.
Why advance certainty is becoming increasingly important
International information exchange between tax authorities continues to expand, while transfer pricing is receiving greater scrutiny from tax authorities around the world. As a result, businesses are increasingly confronted with questions regarding their tax position and cross-border transactions. Obtaining advance tax certainty can help manage tax risks and prevent lengthy disputes. This development aligns with the focus of our Tax Controversy & Litigation practice on dispute prevention.
How can Meijburg & Co support you?
Our specialists combine expertise in Tax Controversy & Litigation, transfer pricing and international tax law. We support clients with, among other things:
- Assessing the feasibility of an ATR, APA or BAPA application
- Preparing the required documentation
- Consultation and negotiations with tax authorities
- International coordination through the KPMG network
- Implementation and ongoing monitoring of agreed arrangements
Discover how an ATR, APA or BAPA can contribute to greater tax certainty, a manageable risk profile and effective dispute prevention.
Our specialists would be pleased to discuss which approach best suits your organisation.
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FAQ
When is it advisable to obtain advance certainty through an ATR, APA or BAPA?
For businesses dealing with complex or cross-border tax matters, obtaining advance certainty can help mitigate tax risks and prevent future discussions with tax authorities. An ATR, APA or BAPA provides clarity regarding the tax treatment of transactions and can contribute to a better-managed tax position for the organisation.
What are the advantages of an APA or BAPA compared to resolving a tax dispute afterwards?
An APA or BAPA focuses on dispute prevention by establishing agreements in advance on the application of transfer pricing rules. This enables businesses to avoid lengthy discussions, uncertainty regarding their tax position and potential double taxation. This proactive approach provides greater predictability and supports effective tax governance.
How does a BAPA help prevent double taxation?
Under a BAPA, the tax authorities of two countries jointly agree on the transfer pricing methodology to be applied to cross-border transactions. This reduces the likelihood that the same profits will be taxed in multiple jurisdictions, providing greater certainty for internationally operating businesses.
