Advance Pricing Agreement Schweiz

Multinational organizations are working in an environment of unprecedented complexity. The increase in the volume and diversity of intercompany transactions and transfer pricing rules, along with enhanced enforcement measures around the world, have made transfer pricing a major risk management issue for global companies. The goal of Deloitte`s transfer pricing network is to help companies manage risk by directing practical transfer solutions to their overall business processes and objectives, providing strategic documentation to support their transfer pricing practices, and effectively resolving litigation. Deloitte has a well-deserved reputation for quality and results. Under Swiss tax law, there is no specific transfer pricing regime. However, tax authorities should comply with OECD transfer pricing guidelines, in line with Circular 4 of the 1997 Federal Tax Administration, which was revised in 2004. This circular contains a general application of the arm length principle to the determination of the taxable income of service companies. These principles of general application have not been supplemented by other provisions. With regard to bilateral or multilateral agreements on ex ante prices, negotiated through the Secretariat of State for International Finance, the timetable is equally difficult to predict. With regard to the procedures for abolishing double taxation completed in 2016, the minimum duration was 12 days and the average duration was 26 months, whereas the minimum duration was a few weeks in 2017 and the average duration of 24 months.

For double taxation threat prevention procedures in 2016, the minimum duration was one month and the average duration was 43 months, while the minimum duration was one month in 2017 and the average duration was 32 months. Depending on the degree of difficulty in international negotiations, the process can take a long time. The Secretary of State for International Finance is working to get a quick process. Switzerland relies heavily on transfer pricing guidelines, as it does not have specific transfer pricing provisions. As a result, the Federal Tax Administration has ordered cantonal tax authorities to apply the OECD transfer pricing guidelines directly to all transfer pricing issues.2. The OECD analyses the legal and administrative framework of POPs (Article 25), national law, guidelines on POP procedures and practical application of rules in practice. Swiss taxpayers file tax returns on a self-assessment basis. In this context, the Swiss tax authorities may also consider that the tax return is complete and that no further investigation is necessary. Investigations are therefore not automatic, even with regard to transfer pricing.