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All glossary terms

Glossary term

Advance Pricing Agreement (APA)

Agreement between taxpayer and tax authority on transfer pricing for future years.

Related terms

2

Jurisdictions

us, global

Definition

APAs provide upfront certainty on transfer pricing methodologies. Bilateral or multilateral APAs involve multiple tax authorities; unilateral APAs involve one. The U.S. APMA program administers APAs for the IRS.

Examples

  • A multinational obtains a bilateral APA with the U.S. and Japan on transfer pricing for intercompany services.

Translations

ESacuerdo previo de precios
ZH预约定价安排
DEAdvance-Pricing-Agreement
FRaccord préalable de prix
JA事前確認制度

Citations

Related citations

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Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.