26/11/21
Decree 267/2021, of 26 November, revokes Decree 620-A/2008, of 16 July. It amends the rules on the procedures related with the conclusion of Advance Pricing Agreements (APA), as foreseen in Article 138 of the CIT Code.
Decree 267/2021, of 26 November, revokes Decree 620-A/2008, of 16 July. It amends the rules on the procedures related with the conclusion of Advance Pricing Agreements (APA), as foreseen in Article 138 of the CIT Code.
This Decree is aligned with the amendments introduced in Article 138 of the CIT Code. In addition, it also improves the rules applicable to APA following a period of 10 years of experience since its introduction. Its essence remains unchanged – it aims at providing legal certainty and assurance derived from a correct use of transfer pricing rules, while at the same time avoiding double taxation when an APA is bilateral or multilateral, in view of the guidelines issued by OECD as well as by the European Union Joint Transfer Pricing Forum.
It is recalled that bilateral or multilateral APA can only be concluded with jurisdictions with which Portugal concluded a tax treaty that includes a provision on mutual agreement procedure (either through a tax treaty based on OECD model tax convention or through the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS commonly known as BEPS MLI).
We highlight some of the main changes introduced:
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