In Finland, there is no specific legislation on the APP. Finland can enter into a pre-price agreement with the countries with which it has a tax treaty (a contract to avoid double taxation on income and capital income). An APP is based on the mutual agreement procedure provided for by the tax treaties between Finland and other states, which allows the abolition of international double taxation between contracting states. The mutual unification procedure is based on Article 25 of the model tax treaty published by the Organisation for Economic Co-operation and Development (OECD). Yes, the APA program is independent of the audit function of the tax authorities and the relevant authorities that deal with other cases of double taxation. All of the subject`s documents are returned to the subject if the subject`s application for APA is not approved or cancelled by the DGT. The DGT may not use documents for tax audit and tax investigation purposes during the APA process. The cases of the mutual agreement procedure were handled by the Directorate of International Taxation. (a) to the person in which and with respect to the transaction in which the agreement was entered into and under Indian tax law, it is an agreement between the Central Council for Direct Taxes (CBDT) and anyone who determines in advance the price of the arm length or determines how the price of the length of arms (or both) is determined. , as far as an international transaction is concerned. (i) not to compel the board or person to enter into an agreement or to initiate the contractual process, a pre-price agreement can only be concluded if the comparison in the agreement is consistent with the principle of arm length.
This means that under the solution resulting from the APP negotiations, Finland must be entitled to a share of tax revenues on the basis of a length generated by the transactions mentioned in the agreement. The pre-price agreement is always the initiative of the taxpayer. The APP procedure begins with the written request of the subject to the competent authority. There is no standard format for application in Finland, but the subject should check with the competent authorities of other countries to verify the requirements set in those countries for the application for APA (for example. B deadlines for submitting the application, content requirements). The APA procedure is generally conducted in English, which is why the application for the APA must be written in English. The appropriate authorities may agree that the subject is required to submit a notification after the APA. The subject may, for example, be required to notify the appropriate authority each year of compliance with the current APA. This reporting obligation is not related to the obligation to provide tax returns or the obligation to provide transfer pricing information, as it relates to a separate notification to the competent authority.
The reporting requirement is part of the APA`s general conditions. When the subject is notified of the outcome of the negotiations, the competent authority also informs the subject of the issues for which the declaration is to be submitted and of the time frames for doing so. The meeting may be more productive if, prior to the meeting, the subject submits to the appropriate authority the issue of transfer pricing that he intends to include in the application, the specific scope of the APA and any other relevant issue necessary to resolve the matter.