Under this process:
- An APA can be unilateral, bilateral or multilateral.
- An APA is used to establish a transfer pricing method in accordance with the “arm’s length principle” for a given time period.
- Additional criteria—e.g., the comparable data to be used—for the determination of the intercompany prices may be agreed.
- Supporting documentation and information to be submitted with the application for a preliminary consultation and with the APA application itself is specifically set forth.
- Within the framework of the APA procedure, tax authority officials may visit the taxpayer’s premises (with consent) to ascertain the conditions of the business operations.
- The length of time allotted for the evaluation state and issuance of the APA cannot exceed 120 days from the date when the APA application is submitted (provided a foreign tax authority is not involved).
- The APA is effective from the date that it has been agreed to by the interested parties.
- The APA cannot concern a tax year prior to the submission of the APA application, and the APA’s duration cannot exceed four years.
- Following the issuance of the APA, the taxpayer must prepare and submit an annual compliance report to demonstrate compliance with the provisions of the APA.
- The taxpayer’s transfer pricing documentation obligation covers all intercompany transactions (not only cross-border), while the APA procedure relates only to future cross-border intercompany transactions.
Read a 2014 report prepared by the KPMG member firm in Greece: Guidelines issued by the Ministry of Finance regarding the procedure for the issuance of Advance Pricing Agreements