Advance Pricing Agreement Switzerland

As a general rule, at least two stops are required in transfer pricing cases. On the one hand, a judgment on withholding tax and/or stamp duty is requested from the Federal Tax Administration. Secondly, a judgment on the effects of corporation tax is requested from the relevant cantonal tax authorities. In addition, the Secretariat of State for International Finance does not levy royalties for the negotiation of bilateral or multilateral agreements on ex ante prices. Deloitte has a Global Transfer Pricing Centre comprising economists, tax experts and MBAs with international experience in transfer pricing in Europe, North and South America or Asia Pacific. This centralized global approach facilitates consistency of reporting and eliminates internal inconsistencies that may arise from multiple service providers, allowing the process to be explained to the appropriate authorities in a more efficient, efficient and simpler way. The Federal Tax Administration does not charge fees for rulings in Switzerland. However, some cantons charge royalties. These relate to the work required and are not defined as a percentage of the transaction amount (i.e. they are generally negligible).

Bilateral or multilateral agreements on pre-price negotiations negotiated through the Secretariat of State for International Finance follow the same principles. The law does not set the duration of rulings in Switzerland. In practice, decisions are often either without a timetable or three years. However, judgments remain valid only as long as the actual facts are consistent with the facts revealed and the corresponding law does not change. The duration of a pre-price agreement will be regularly negotiated between the parties. As a general rule, the Federal Tax Administration proposes a multi-year prescription. It is common practice to request advance rulings in Switzerland and to have a considerable advantage in obtaining a legally binding response to the tax consequences of, for example, the introduction of a transfer pricing system. However, from 2018, Switzerland will participate in the exchange of information on tax rulings (Article 8, point ff) of the regulation on mutual assistance in tax matters in 2016. Before requesting a decision, the subjects should determine whether they are subject to international exchange. On the one hand, transfer pricing decisions may contain confidential information and the international exchange of information may involve certain risks. On the other hand, the judgments themselves are not exchanged.

The risk of disclosing confidential information, such as trade secrets, to persons outside the tax administration should also be taken into account in the case of bilateral or multilateral agreements negotiated by the State Secretariat for International Finance, which may need to be included in the local transfer pricing file under foreign law.

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