Budget Law 2021 contains new provisions on advance pricing agreement (APA) rollback. Multinational group taxpayers that had already agreed to APAs to address their transfer pricing can now rely on their retroactivity for tax periods still open for assessment.
The rollback applies to unilateral, bilateral, and multilateral APAs. For unilateral APA, standstill circumstances, both in fact and in law, are required. Moreover, the competent authority must not have started an assessment. For bilateral and multilateral APAs, it is also essential that the foreign tax authority involved agrees with the rollback.
Therefore, rollback is not granted when issues encompassed by the agreement are under investigations or tax assessment, past circumstances are changed, or foreign tax authorities do not agree to extend retroactivity of bilateral or multilateral agreement. The request is subject to the payment of a fee calculated taking into account the overall turnover realized by the group the taxpayer involved belongs to.
The new law provides that to obtain and APAs, the taxpayer must now pay the following fees:
| Turnover Thresholds | APA Fees |
| Turnover up to USD 121,859 | USD 12,185 |
| Turnover up to USD 913,942 | USD 36,557 |
| Turnover is more than USD 913,942 | USD 60,929 |
