International Tax
APA (Advance Pricing Agreement) — Meaning
An agreement with the tax authorities fixing transfer pricing for up to five future years, with rollback.
What is APA (Advance Pricing Agreement)?
An Advance Pricing Agreement settles the transfer pricing method and terms for specified international transactions for up to five future years and can be rolled back to four earlier years. A unilateral APA is with the Indian tax department; a bilateral or multilateral APA also involves the other country's authority and removes double-taxation risk. APAs suit groups with recurring transactions and a history of transfer pricing disputes.
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Related terms
More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
