Since 2012, the authorized body in Russia has received 82 draft APA agreements and concluded 25 unilaterally (i.e. an agreement between the FTT and the Russian taxpayer) with major Russian taxpayers such as OAO Gazpromneft, OAO NK Rosneft, PAO Aeroflot and AO DONAVIA. Since then, the question of whether bilateral SAs can already be launched in Russia on the basis of the cartel procedure (POP) under an existing tax agreement has been debated. The new procedures provided for in the draft Regulation have confirmed this possibility, in accordance with international standards. The competent authorities concerned may communicate on this subject later in the negotiation phase. Communications between the competent authorities may be made either in writing or in person. If the competent authorities reach an amicable agreement on a specific APA, the agreement is formalized by a written document. 2. Allow the taxable person to conclude a unilateral APA if the Russian and foreign tax authorities do not reach an agreement after consideration of a draft APA. On 27 March 2020, the Russian Ministry of Finance published an updated version of the draft law “On the amendment of the first part of the Russian Tax Code aimed at improving tax control over prices and on the procedure for concluding agreements on advanced prices” (`the draft law`). An advance pricing agreement (APA) is a prior agreement between a taxable person and a tax department on an appropriate transfer pricing method (TPM) for a number of transactions that are being negotiated over a given period[1] (so-called “hedged” transactions).

On 17 March 27, 2017, the Russian Ministry of Finance (MoF) published a draft regulation on the procedure for concluding bilateral pre-sales agreements (APAs) with authorized bodies of foreign states. This draft regulation fills a legal gap in Russia`s handling of transfer pricing rules and contractual obligations with foreign states. Although the conclusion of the APA has generally been provided for by the Russian Tax Code (in particular By Article 105.20(2) of the Russian Tax Code) for large taxpayers since 2012, it is only through this draft Regulation that the procedure for the closure of bilateral ABS has been fixed. The Russian Ministry of Finance issues a decree authorizing the procedure for concluding withholding tax agreements between Russian and foreign tax authorities – on the need to modify the draft APP – stamp duty in De RUB 2 million. to re-examine the request for closure of the ABS, it is not requested – at the end of the ABS or – the refusal to conclude the ABS if it is not possible to reach an amicable agreement with the competent authority of the APA foreign country Technically, the procedure for bilateral ABS is initiated by filing a formal request in the prescribed form, accompanied by all the necessary documents. . . .