AUSTRIA
Czech Republic
Germany
Slovak
Vienna
Austria
Law and Practice Contributed by: Raphael Holzinger, Matthias Jancura and Claudia Synek Grant Thornton Austria Contents 1. Rules Governing Transfer Pricing p.12 1.1 Statutes and Regulations p.12 1.2 Current Regime and Recent Changes p.12 2. Definition of Control/Related Parties p.12 2.1 Application of Transfer Pricing Rules p.12 3. Methods and Method Selection and Application p.13 3.1 Transfer Pricing Methods p.13 3.2 Unspecified Methods p.13 3.3 Hierarchy of Methods p.13 3.4 Ranges and Statistical Measures p.13 3.5 Comparability Adjustments p.13 4. Intangibles p.14 4.1 Notable Rules p.14 4.2 Hard-to-Value Intangibles p.14 4.3 Cost Sharing/Cost Contribution Arrangements p.14 5. Adjustments p.14 5.1 Upward Transfer Pricing Adjustments p.14 5.2 Secondary Transfer Pricing Adjustments p.14 6. Cross-Border Information Sharing p.14 6.1 Sharing Taxpayer Information p.14 6.2 Joint Audits p.15 6.3 Simultaneous Controls p.15 6.4 International Compliance Assessment Programme (ICAP) p.15 7. Advance Pricing Agreements (APAs) p.16 7.1 Programmes Allowing for Rulings Regarding Transfer Pricing p.16 7.2 Administration of Programmes p.16 7.3 Co-Ordination Between the APA Process and Mutual Agreement Procedures p.16 7.4 Limits on Taxpayers/Transactions Eligible for an APA p.16 7.5 APA Application Deadlines p.17 7.6 APA User Fees p.17 7.7 Duration of APA Cover p.17 7.8 Retroactive Effect for APAs p.17 8. Penalties and Documentation p.17 8.1 Transfer Pricing Penalties and Defences p.17 8.2 Transfer Pricing Documentation p.18
Hungary
Italy
Slovenia
Croatia
9. Alignment With OECD Guidelines p.18 9.1 Alignment and Differences p.18 9.2 Arm’s Length Principle p.18 9.3 Impact of the Base Erosion and Profit Shifting (BEPS) Project p.18 9.4 Impact of BEPS 2.0 p.18 9.5 Pillar One Amount B p.19 9.6 Entities Bearing the Risk of Another Entity’s Operations p.19 9.7 Allocation of Profits to Permanent Establishments (PEs) p.19 10. Relevance of the United Nations Practical Manual on Transfer Pricing p.19 10.1 Impact of UN Practical Manual on Transfer Pricing p.19 11. Safe Harbours or Other Unique Rules p.19 11.1 Transfer Pricing Safe Harbours p.19 11.2 Rules on Savings Arising From Operating in the Jurisdiction p.19 11.3 Unique Transfer Pricing Rules or Practices p.20 11.4 Financial Transactions p.20 12. Co-Ordination With Customs Valuation p.20 12.1 Co-Ordination Requirements Between Transfer Pricing and Customs Valuation p.20 13. Controversy Process p.20 13.1 Options and Requirements in Transfer Pricing Controversies p.20 14. Judicial Precedent p.20 14.1 Judicial Precedent on Transfer Pricing p.20 14.2 Significant Court Rulings p.20 15. Foreign Payment Restrictions p.22 15.1 Restrictions on Outbound Payments Relating to Uncontrolled Transactions p.22 15.2 Restrictions on Outbound Payments Relating to Controlled Transactions p.22 15.3 Effects of Other Countries’ Legal Restrictions p.22 16. Transparency and Confidentiality p.22 16.1 Publication of Information on APAs or Transfer Pricing Audit Outcomes p.22 16.2 Use of “Secret Comparables” p.22
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