International Tax

Transfer Pricing: Rules and Practice in Selected Countries (J-L) (Portfolio 6960)

  • This Portfolio presents the rules and practice related to transfer pricing in Japan, Korea, and Luxembourg.

Description

Chapter 90, “Transfer Pricing Rules and Practice in Japan,” presents the substantive Japanese transfer pricing rules and describes in detail the conduct of a transfer pricing examination. The chapter also analyzes appeals procedures, the availability and process for competent authority relief, and the operation of the Pre–Confirmation System in transfer pricing cases.

Chapter 95, “Transfer Pricing Rules and Practice in Korea,” describes the sources and scope of Korean transfer pricing rules, the approved transfer pricing methodologies and priorities, and the documentation required to support transfer prices under those rules. The chapter also analyzes the procedures and strategies available in dealing with the Korean tax authorities on transfer pricing issues and discusses the availability of and experience with joint U.S.-Korean action in connection with the mutual assistance provision of the U.S.-Korea Income Tax Treaty and in connection with bilateral advance pricing agreements.

Chapter 100, “Transfer Pricing Rules and Practice in Luxembourg,” provides an overview of the current transfer pricing environment in Luxembourg. With the absence of strict transfer pricing rules and a fiscally friendly climate, Luxembourg can be considered an attractive country for international business. The main transfer pricing references in the Luxembourg Income Tax Law date back to 1967, and some general tax provisions even date back to the 1940s. The provisions referring to the arm’s-length principle, however, are very broad, and no recent transfer pricing rules or documentation requirements have been implemented in Luxembourg.

Table of Contents

CHAPTER 90: TRANSFER PRICING RULES AND PRACTICE IN JAPAN by Gary M. Thomas White&Case Tokyo, Japan and Akira Akamatsu Licensed Tax Attorney Tokyo, Japan

90:I. Background

90:II. Sources of Transfer Pricing Law in Japan

90:III. Substantive Transfer Pricing Rules

90:IV. The Transfer Pricing Examination

90:V. Advance Pricing Arrangements

90:VI. Competent Authority

90:VII. Domestic Appeals Procedures

CHAPTER 95: TRANSFER PRICING RULES AND PRACTICE IN KOREA by Woo Taik Kim,  Dong Jun Yeo,  Stefan L. Moller and  Tae Yeon Nam,  Kim &  Chang Seoul, Korea

95:I. Overview of Korean Tax System and Administration

95:II. Basic Korean Transfer Pricing Rules

95:III. Penalties, Waivers, and Interest on Additional Corporation Tax Due Based on Transfer Pricing Adjustments

95:IV. Dealing with the Korean Tax Administration on Transfer Pricing Issues

95:V. Practical Aspects of the Competent Authority Process

95:VI. Information Reporting and Recordkeeping

D. Defenses Against Information Requests by Foreign Governments

95:VII. Coordination of Transfer Pricing with Korean Customs Declarations

CHAPTER 100: TRANSFER PRICING RULES AND PRACTICE IN LUXEMBOURG

100:I. Introduction

100:II. Overview of Luxembourg’s Tax System

100:III. Overview of Luxembourg’s Corporate Income Tax System

100:IV. History of Luxembourg’s Transfer Pricing Rules

100:V. The Transfer Pricing Rules of Luxembourg

100:VI. How the Transfer Pricing Rules of Luxembourg Differ from the OECD Transfer Pricing Guidelines

100:VII. Reporting and Documentation Requirements

100:VIII. Penalties

100:IX. Transfer Pricing Audits in Luxembourg

100:X. Appeals of Transfer Pricing Adjustments

100:XI. Resolving Conflicts with Other Countries

100:XII. Adjustments to Be Made in the Wake of a Transfer Pricing Adjustment

100:XIII. Advance Pricing Agreements

Woo Taik Kim
Tax Partner
Kim & Chang
Stefan_Moller
Stefan Moller
Kim & Chang
rasch-marc-2015
Marc Rasch
Transfer Pricing Partner
PwC Société Coopérative
nam_tae-yeon_2015
Tae-Yeon Nam
Tax Attorney
Kim & Chang
yeo-resize
Dong Jun Yeo
Tax Partner
Kim & Chang
Akira Akamatsu
Partner, Transfer Pricing Group
Deloitte Tohmatsu Consulting LLC