LETTER OF THE FEDERAL TAX SERVICE OF THE RUSSIAN FEDERATION   

of January 12, 2012 No. OA-4-13/85 @

About the conclusion of agreements on pricing for the purposes of the taxation

The Federal Tax Service for the purpose of implementation of Chapter 14.6 of the Tax Code of the Russian Federation, and also in connection with the numerous questions arriving from taxpayers informs on the conclusion of agreements on pricing for the purposes of the taxation (further also - the Agreement).

By consideration of the questions connected with the conclusion of Agreements, FNS of Russia will be guided by provisions of the Tax Code of the Russian Federation (further - the Code), agreements (agreements) on avoidance of double taxation signed by the Russian Federation with foreign states, other Federal Laws and acts of the legislation on taxes and fees, explanations of the Ministry of Finance of the Russian Federation.

In view of that the questions of tax control behind pricing in most cases are raised by the foreign trade transactions, FNS of Russia in case of the conclusion of Agreements will adhere to the commonly accepted principles of the conclusion of such agreements in the international practice in particular containing in the Management of OECD on transfer pricing for multinational companies and tax administrations (further - the Management of OECD).

The agreement on pricing for the purposes of the taxation represents the agreement between the taxpayer and FNS of Russia on procedure for determination of the prices and (or) applications of methods of pricing in controlled transactions for the purpose of ensuring compliance with provision of Item 1 of article 105.3 of the Code.

According to provisions of article 105.20 of the Code the conclusion of the following agreement types is possible:

- Agreements between the taxpayer and FNS of Russia (Item 1 of article 105.20 of the Code);

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