Transfer Pricing: Rules and Practice in Selected Countries (Q-S) (Portfolio 6970)
At a glance
Portfolio 6970-1st: Transfer Pricing: Rules and Practice in Selected Countries (Q-S)
CHAPTER 150: SPAIN
CHAPTER 155: SWEDEN
CHAPTER 160: SWITZERLAND
CHAPTER 145: TRANSFER PRICING RULES AND PRACTICE IN SINGAPORE
145:I. Introduction
145:II. The Transfer Pricing Landscape in Singapore
145:III. Application of the Arm's-Length Principle
145:IV. Corresponding Adjustments
145:V. Other Matters Relevant to the Transfer Pricing Circular
145:VI. Singapore Avenues of Appeal
145:VII. Conclusions
CHAPTER 150: TRANSFER PRICING RULES AND PRACTICE IN SPAIN
150:I. Introduction
150:II. Overview of Spain's Tax System
150:III. Overview of Spain's Income Tax System
150:IV. History of Spain's Transfer Pricing Rules
150:V. The Spanish Transfer Pricing Rules
150:VI. The Spanish Transfer Pricing Rules and the OECD Transfer Pricing Guidelines
150:VII. Documentation and Reporting Requirements
150:VIII. Penalties
150:IX. Tax and Transfer Pricing Audits in Spain
150:X. Administrative Appeals and Litigation of Transfer Pricing Adjustments
150:XI. Resolving Conflicts with Other Countries
150:XII. Adjustments to Be Made in the Wake of a Transfer Pricing Adjustment
150:XIII. Advance Pricing Agreements
150:XIV. Transfer Pricing Case Law
CHAPTER 155: TRANSFER PRICING RULES AND PRACTICE IN SWEDEN
155:I. Introduction
155:II. Background
155:III. Application of General Principles to Transfer Pricing
155:IV. Application of Chapter 14 of the Income Tax Act
155:V. Defenses To Transfer Pricing Adjustments
155:VI. Swedish Tax Treaty Provisions Relevant to Transfer Pricing
155:VII. Conflict of General Principles, Chapter 14 and Treaty Law
155:VIII. Corresponding and Secondary Adjustments
155:IX. Competent Authority Proceedings (Mutual Agreement)
155:X. Arbitration
155:XI. Transfer Pricing Reporting and Documentation Requirements
155:XII. Penalties and Interest on Additional Income Taxes due to Transfer Pricing Income Adjustments
155:XIII. Dealing with the Swedish Tax Authorities on Transfer Pricing Matters
155:XIV. Coordination of Transfer Prices with Swedish Value Added Taxes and Customs
CHAPTER 160: TRANSFER PRICING RULES AND PRACTICE IN SWITZERLANDÂ by Richard J. Wuermli and Katharina B. Padrutt TAX EXPERT International AG, Zurich
160:I. Introduction
160:II. Overview of Corporate Income and Capital Tax System in Switzerland
160:III. Legal Basis for Transfer Pricing Adjustments in Switzerland
160:IV. Specific Transactions between Associated Companies
160:V. OECD Model Tax Convention on Income and on Capital — Relevant Articles
160:VI. The Swiss Treaty Practice
160:VII. OECD Transfer Pricing Guidelines
160:VIII. Consequences of Transfer Pricing Adjustments in Switzerland
160:IX. Compliance and Litigation
Abstract
Chapter 145, “Transfer Pricing Rules and Practice in Singapore,” provides an overview of the rules and practice of transfer pricing in Singapore with regard to determining arm's-length pricing. The term “arm's length” is not defined in the Singapore Income Tax Act (Chapter 134 of Singapore) (ITA), but there are specific provisions in the ITA that require transactions between related parties to be conducted on similar bases as unrelated parties would conduct those transactions. Transfer pricing guidelines have been issued by the Inland Revenue Authority of Singapore (IRAS). The material in the chapter is current as of September 2013.
Chapter 150, “Transfer Pricing Rules and Practice in Spain,” begins with an overview of the main characteristics of Spain's economy and of the Spanish tax system, and then provides a detailed discussion of the Spanish transfer pricing rules and regulations. The chapter includes an analysis of the specific rules and regulations that are provided under Spanish law for services, cost-sharing arrangements, and loans and thin capitalization. The chapter also discusses transfer pricing audit procedures in Spain as well as the consequences of a transfer pricing adjustment, both from a domestic perspective and from an international dispute resolution point of view. Finally, the chapter discusses the Advance Pricing Agreement alternative that is available to Spanish taxpayers as well as the relevant transfer pricing case law.
Chapter 155, “Transfer Pricing Rules and Practice in Sweden,” provides an overview of the Swedish tax system, particularly the provisions applicable to operating a controlled group of companies, including the rules for tax consolidation, restrictions on interest deductibility, payment of group dividends, and taxation of controlled foreign corporations. The chapter then analyzes in depth the relevant provisions in Swedish tax law governing transfer pricing adjustments, including the definition of an arm's length price in the controlled group context, the examination process, taxpayer documentation requirements, settlement of transfer pricing disputes through arbitration or the competent authority process, and the advance pricing agreement regime. The chapter also examines significant transfer pricing cases, potential defenses, and tax treaty provisions relevant to transfer pricing issues involving Sweden and the United States.
Chapter 160, “Transfer Pricing Rules and Practice in Switzerland,” analyzes the Swiss federal and cantonal rules and procedures for making transfer pricing adjustments. In many countries there are specific rules for setting or evaluating prices for related-party services, licenses, or sales of goods or intangibles. Switzerland, however, has even today only rudimentary rules dealing with transfer pricing and Swiss tax administrators often simply lack the capacity to audit complex transfer pricing arrangements. The reason for this is that historically multinational enterprises generally used Switzerland's beneficial tax environment to shelter profits, and thus transfer pricing was seldom used to reduce profits in Switzerland. Nowadays, in today's worldwide transfer pricing environment, Swiss multinational enterprises and multinationals with Swiss-affiliated companies are more often confronted with foreign transfer pricing adjustments which may affect the taxable base of a Swiss company and thus present the possibility of double taxation. In such a situation, a knowledge of Swiss transfer pricing rules and practice is necessary in order to persuade the Swiss tax authorities that a corresponding adjustment is appropriate, either unilaterally or as part of a mutual agreement procedure.