New Transfer Pricing Rules in Russia: A Comparative Assessment

International Trade Law and Regulation. 2016. Vol. 22. No. 3. P. 64–72.

Сассо Л.

The purpose of this article is to compare Russian transfer pricing norms, now only three years old, to US norms in this area, which are rooted in a nine-decade history. This comparison is carried out in a few stages. Section II briefly discusses the background of current US and Russian law on transfer pricing. Section III provides an overview of general transfer pricing rules: what entities may come under scrutiny; which taxes these rules apply to; which party bears the burden of proof, and what criteria are used to establish the comparability of external ‘benchmark’ transactions with transactions under examination. Section IV turns to the modus operandi of tax administration in the US and Russia as it adjusts the results of a transaction between related parties to produce an arm’s length result. Section V touches on advance pricing arrangements – a tool that taxpayers can use to ensure predictability of their tax liabilities. The conclusions of the comparison are presented in Section VI.

Ключевые слова: transfer pricing, advance pricing arreagements, arm's length transaction, Federal Law 227-FZ, related parties transaction