Amendments to Russia's transfer pricing rules, designed to improve efficiency and reduce tax avoidance, have been welcomed by the Organization of Economic Co-operation and Development (OECD), which says such changes would bring them largely in line with international standards.
Russia, currently negotiating to become a member of the OECD, published a draft version of new transfer pricing laws on May 4, the stipulations of which would see improved compliance with the Organization's Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Conforming with these internationally-agreed tax standards is, according to the OECD, a key element of accession talks.
Praising the move, OECD Secretary-General, Angel Gurría said: "I am very pleased to see that the Russian Federation is undertaking to upgrade its legal framework in the area of transfer pricing in order to bring it in line with best international practices. The new transfer pricing law will be an important step towards achieving not only improved protection for the Russian treasury but also greater legal certainty of treatment and protection against double taxation for multinational enterprises. This will also help foster foreign direct investment."
If approved by the Russian parliament, the new law would come into effect in January, 2012.
Russia, currently negotiating to become a member of the OECD, published a draft version of new transfer pricing laws on May 4, the stipulations of which would see improved compliance with the Organization's Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Conforming with these internationally-agreed tax standards is, according to the OECD, a key element of accession talks.
Praising the move, OECD Secretary-General, Angel Gurría said: "I am very pleased to see that the Russian Federation is undertaking to upgrade its legal framework in the area of transfer pricing in order to bring it in line with best international practices. The new transfer pricing law will be an important step towards achieving not only improved protection for the Russian treasury but also greater legal certainty of treatment and protection against double taxation for multinational enterprises. This will also help foster foreign direct investment."
If approved by the Russian parliament, the new law would come into effect in January, 2012.
