Conducting APA Exchanges and Negotiations: Which Method?

Currently, the method of conducting APA exchanges and negotiations can be carried out in the form of meetings, direct or indirect meetings via telephone, online conferencing, or by exchanging documents through correspondence.

Illustration (Source: Internet)

However, Circular 201/2013/TT-BTC stipulates different forms of APA to conduct exchanges and negotiate the content of APA, specifically:

In the case of a unilateral APA: The content of the exchanges and negotiations is a draft APA prepared by the tax authority; the tax authority may send the draft in advance to the taxpayer.

In the case of a bilateral or multilateral APA:

- Representatives of the tax authority are the competent authorities responsible for contacting the competent authorities of the partner tax authority to conduct discussions and negotiate the APA according to the bilateral procedural agreement of the relevant tax treaty.- During bilateral or multilateral negotiations between involved tax authorities, if necessary and agreed upon by the competent authorities of the tax authorities, taxpayers may appoint representatives to attend upon the invitation of the tax authority to provide additional information, documents, or explanations on related issues.- The tax authority may inform the taxpayer of summary information about the progress and results of the negotiations; simultaneously, they may request the taxpayer to supplement information, data, or explanations on related content.

See the full text of the provisions in Circular 201/2013/TT-BTC, effective from February 5, 2014.

Thu Ba

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