This is an agreement between the committee and the applicant on the basis of an agreement, within the meaning of Rule 44GA, between the competent authority of India and the competent authority of the other country regarding the most appropriate transfer pricing method or the price of the length of arms. In Finland, there is no specific legislation on the APP. Finland can enter into a pre-price agreement with the countries with which it has a tax treaty (a contract to avoid double taxation on income and capital income). An APP is based on the mutual agreement procedure provided for by the tax treaties between Finland and other states, which allows the abolition of international double taxation between contracting states. The mutual unification procedure is based on Article 25 of the model tax treaty published by the Organisation for Economic Co-operation and Development (OECD). A preferential price agreement or preferential pricing agreement (APA) is an agreement between at least two states parties to a tax agreement. Pre-price agreements are negotiated by the competent authorities of each of the countries concerned. The APA can be registered for the period covered by the agreement. However, it cannot exceed 5 consecutive years. The application may be withdrawn by the applicant at any time prior to the conclusion of the agreement (i.e.
signed by the CBDT). However, the taxes paid at the time of filing the application are non-refundable. APA, once entered (i.e. signed by CBDT) is mandatory for the person in which the agreement was introduced and the income tax authorities with respect to the international transaction made by that person. 1. If the taxpayer submitted the income tax return (for each tax year referred to by the APA) prior to the conclusion of the contract, the taxpayer must file an amended tax return to comply with the APA within three months of the end of the closing month of the APA`s closing month. one. Failure to assess compliance with contractual conditions (determined by the compliance audit report). The APA is the decision of a tax authority on a transfer pricing issue given by a specified subject for a specified period of time. The APP is binding on the Finnish tax administration for the duration of its application if the subject complies with the general terms of the APP for the duration of the agreement and if the critical assumptions contained in the agreement are updated.