Statistics on APAs in the EU at the End of 2014

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EUROPEAN COMMISSION DIRECTORATE-GENERAL TAXATION AND CUSTO UNION Direct taxation, Tax Coordination, Economic Analysis and Evaluation Direct Tax Policy and Cooperation Brussels, October 2015 Taxud/D2 DOC: JTPF/009/2015/EN EU JOINT TRANSFER PRICING FORUM Statistics on in the EU at the End of Meeting of 22 October 2015 Contact: Hartmut Förster, Telephone (32-2) 29.55.511 Morgan Guillou, Telephone (32-2) 29.54.146 E-mail: taxud-joint-transfer-pricing-forum@ec.europa.eu

Statistics on : situation prevailing on 31/12/ in force at the end of in Unilateral in in s granted in rejected in request in Belgium Unilateral (Advance rulings); Bilateral; No 110./. 7,/, 103 56 91 57 100 56,/,./. 2,/, 24 36 Bulgaria Czech Republic (I) and (II) Denmark No regulations available at this moment Unilateral (Advance rulings legislation from 1 st of January 2006); Bilateral and (possible under MAP) Bilateral,, Advance rulings CZK 10 000 Only for Advance Rulings; the filing fee is DKK 300. 24 10 n.a (I) n.a. (I) 24 10 12 II) 6 (II) 9 3 2 1 1 0 11 0 11,00 - - 4 6 0 2 0 0 1 0 - n/a n/a n.a. (I) 32 - granted: 13, in force: 19 Germany Bilateral; (Unilateral rulings on transfer pricing are only available under exceptional circumstances specified in a 2006 Federal Ministry of Finance circular) Generally: EUR 20 000 (15 000 for prolongation/10.000 for amendment); Smaller enterprises: EUR 10 000 (7 500/5 000); In case of hardship and specific interest of tax administration in APA: 0 8 16 8 16 - - 19 15 4 7 - - 3-35 (average for granted ) / 33 (overall average for granted 2012, 2013 and ) 30 (average for granted ) / 41 (overall average for granted 2012, 2013 and ) Estonia No or advance rulings of any kind. Bilateral in principle possible under MAP Bilateral under treaties. Ireland to the extent (Republic of) that they consist of a series of bilateral agreements No 5 5 5 5 - - 1 1 1 - - - - - 16 - Greece Spain multilateral.. Upon filing of the application for preliminary consultation, a duty of EUR 1000 is paid.for filing the APA application the duty amounts to EURO 5000. In case consultations 2 No 40 11 11-29 11 17 5 15 5 - - 7 1 35 - France Croatia Italy Cyprus No or advance rulings available at this moment Unilateral, bilateral and multilateral are available pursuant to Article 8 of Decree-Law no.269/2003, as converted into Law no.326 of 24th November 2003, and the MAP Article of the relevant Tax Treaty. are not available. Advance rulings on the interpretation/application of the tax laws are available on request No 20 35 14 25 6 10 9 5 9 13 1-3 0 31 27 No 27 24 0 0 27 24 43 47 9 7 3 1 0 0./../. Latvia Unilateral, 7114 euro 1 - - - 1 - - - 1 - - - - -,/,,/, Page 1

Statistics on : situation prevailing on 31/12/ in force at the end of in Unilateral in in s granted in rejected in request in Lithuania APA legislation from 01/01/2012. Unilateral, Bilateral or, Advance rulings No - 1 - - - 1 1 1-1 - - - - - - Luxembourg multilateral., new tax policy has been introduced in 2015. Filing fee of 10,000 EUR per APA request has been introduced 347-347 398 228 10 50 - Hungary multilateral. The filing fee for unilateral APA is HUF 500 000 - HUF 5 million, if the arm's length price can be determined with the CUP, Resale price method or Cost plus method and HUF 2 million - HUF 7 million if the arm's length price can be determined by using other methods. The fee for bilateral APA is HUF 3 million - HUF 8 million, for multinational APA HUF 5 million - HUF 10 million. 61 18 - - 61 18 19 3 15 7 1-1 - - - Malta (III) No formal rules yet 1 Netherlands (V) ; Advance rulings No (v) (V) (V) (V) (V) (V) 272 203 3 58 24 24 Austria (VII) Unilateral (Advance rulings); Bilateral; For unilateral yes, for bilateral/multilateral - no (VII) (VII) 2 2 (VII) (VII) (VII) (VII) (VII) (VII) (VII) (VII) (VII) (VII) 43 59 Poland The filing fee is 1% of the value of a transaction with the following provisions: for domestic unilateral agreement (i.e. involving only domestic related entities) - no less then PLN 5,000 and no more than PLN 50,000; for unilateral agreement concerning foreign entities no less than PLN 20,000 and no more than PLN 100,000; for foreign bilateral or multilateral the fee amounts should be no less than PLN 50,000 and no more than PLN 200,000. Renewal fees are half of the amount of the original filing fee. 11 4 1 1 10 3 9 2 1 - - - - - 7,5 33,5 Portugal The Tax Code on CIT (Art. 138) and the Ministerial Order n.º 620-A/2008, 16 July, allow unilateral, bilateral and multilateral The filing fee is variable according to 's turnover. The minimum fee is EUR 3 152,40 and the maximum - EUR 34 915,85. Renewal fees are 50 % of the amounts of the original fees. 3 1 - - 3 1 6 1 2 1 - - - - - - Romania (IV) ; Advance rulings (IV). ; Advance rulings (IV) The filing fees are:- large taxpayers 20.000 Euro 15.000 Euro for the modification of the APA in force - other types of taxpayers (small, medium size taxpayers) 10.000 Euro 6.000 Euro for the modification of the APA in force 8 - - 2 6-2 6 - - - - - The deadline for issuing an APA is of 18 months. The deadline for issuing an APA is of 18 months. Slovenia No or advance rulings of any kind Page 2

Statistics on : situation prevailing on 31/12/ Slovak Republic Finland multilateral. Advance rulings (unilateral APA) are available. multilateral APA's are possible according to the tax treaties concluded by Finland.. In case of unilateral APA it is 1% from the estimated business case, but minimum of 4000 EUR up to 30 000 EUR. In case of bilateral/multilateral it is 2% from the estimated business case, but minimum 5000 EUR up to 30 000 EUR, for advance rulings; Based on the complexity of the case and actual time needed to conclude the ruling, the filing fee can amount to EUR 1.630 or EUR 2.440. in force at the end of in Unilateral in in s granted in rejected in request in 3 - - - 3-2 1 1 - - 1 - - - - 11 4 - - 11 4 5 5 3 1-2 - - n/a n/a Sweden APA legislation from 1 January 2010. Only bilateral or multilateral. 150,000 SEK per country (Prolongation fee 100,000-125,000 SEK) 2 3 2 3 - - 2 4 2 3 - - - - 36 36 UK (VIII) Unilateral; Bilateral No 17 71 16 37 1 34 9 40 2 32 1-1 8 14 35 Notes (I) No bi- or multilateral APA is finished yet (I) Some of the requests can't be broken down to 2 columns exactly because e.g. one request covers more transactions both with EU and non-eu. Those requests are counted as non-eu only. (III) One APA request received in (IV) Advance rulings issued in Romania are not for transfer pricing purposes (V) Not administered. Split EU & non-eu not administered. (VII) Data not available (VIII) The UK figures have been computed for the y/e 31/03/. The UK figures also reflect the way that UK counts (which differs from the definitions provided with the questionnaire), i.e. an is counted as one case irrespective of the number of UK entities that may be party to the relevant agreement. Page 3

Statistics on : situation prevailing on 31/12/ Guidance on the completion of the APA questionnaire The questionnaire aims to collect information about for companies and PEs. The reference year for this document is (situation prevailing at the end of ). Most of the columns are broken down into between EU and non-eu countries. The terms used in the table should be understood as follows: "APA in force": an APA is considered as "in force" when it was granted before the end of the reference year (e.g. ) and the agreement's term covers the reference year. Therefore, an APA granted during the reference year (N year) but starting in N+1 year is not counted as "in the reference period". The figure in the column "total number of in force" should be the result of adding the following two columns: bi- and multilateral in force and unilateral in force. Counting of : If an APA covers transactions with more than one company of the MNE in the respective (e.g. Subsidiaries A and B in X each having transactions with parent company P in State Y covered by the APA), each APA should be counted (here 2 in X). Counting of multilateral : A multilateral APA should be considered as several bilateral and should also be counted that way for statistical purposes, i.e. a multilateral APA signed by member State A, member State B and member State C is counted, from the perspective of State A, as a bilateral APA between A and B, a bilateral APA between A and C and therefore as two. Likewise, a request for such a multilateral APA is counted as two requests. "Requests received": an APA request should be counted as received in the year the formal written APA request was filed. The term "APA request" has a meaning in line with section 4.52 and 4.53 of the EU JTPF APA Guidelines, i.e. a formal application supplemented with appropriate information. Pre-filing requests are therefore not considered. "APA granted": an APA is considered as granted when the Competent Authority(ies) has (have) formally agreed to the APA, whatever form this formal agreement takes (exchange of letters, signature of the agreement, ) and all the subsequent formal proceedings that may be required are fulfilled (e.g. a formal agreement by or an advance ruling granted to ). That is, if a bilateral APA was signed by the Competent Authorities in year N and e.g. the implementing domestic advance ruling or 's agreement was only granted in N + 1, the APA is counted as granted in N +1². ²) Mismatches may result both from different member States' approaches (e.g. one ' reference date is that of the closing letter and for the other, it is that of 's agreement) and also from the internal implementation in a different year of the proposed approach. Although these discrepancies are considered as tolerable for the purpose of these statistics, CAs may want to avoid them by informing each other about subsequent proceedings and agree on the date they consider the APA as finally granted. "APA rejected": an APA is considered as rejected when an APA application is not accepted by the tax administration or negotiations to reach a bilateral or multilateral APA failed and therefore no APA was granted. " negotiate the ": this column indicates on average the period between the time an APA request was received and the formal agreement of the APA. Unilateral are excluded from the calculations. Page 4