S.L. 123.207 Art. 12Advance pricing agreements.

(1) The competent authority may enter into an advance pricing agreement with the relevant foreign competent authority. An advance pricing agreement may be of a bilateral or multilateral nature.

(2) A request for an advance pricing agreement may be made in connection with the tax treatment of a cross-border arrangement commencing on or after the date that the advance pricing agreement takes effect:

Provided that, where the arrangement has already commenced on the date of the request, the scope of the request may be extended to such transactions that took place during the previous three

(3) basis years.

(3) The provisions of rule 11(2), (4) and (5) shall apply, to a request for an advance pricing agreement: mutatis mutandis,

Provided that, with respect to a request under this rule, the requirements under rule 11(2)(c) shall also include a reference to the relevant provision concerning the mutual agreement procedure.

(4) A non-refundable fee of five thousand euro (€5,000) shall be paid when making a request for an advance pricing agreement.

(5) An advance pricing agreement may be entered into for a duration of a period not exceeding five (5) years from the date the advance pricing agreement takes effect as determined during the relevant mutual agreement procedure.

(6) In addition to the period provided for in sub-rule (5), an advance pricing agreement may also cover a period not exceeding three(3) basis years preceding the date of the request for the advance pricing agreement where a request has been made to this effect by the directly interested party.

(7) A directly interested party shall notify the competent authority of any relevant material change within thirty (30) days from the date of its occurrence or the date from when such party becomes aware thereof. Where such notification includes a request for a modification of the relevant advance pricing agreement, such a request may only be considered to be a new request for an advance pricing agreement if the competent authority and the other competent authorities so agree.

(8) An advance pricing agreement shall have no effect as from the date on which the competent authority notifies the directly interested party that a relevant material change has taken place. The competent authority shall obtain the agreement of the other competent authorities involved before issuing such notification.

(9) An advance pricing agreement shall be null and void where the notification referred to in sub-rule (7) has not been made or where it is based on a misrepresentation or withholding of any relevant facts:

Provided that the provisions of this sub-rule shall only apply where there is agreement to this effect with the other foreign competent authorities involved.

(10) A directly interested party may request a renewal of an advance pricing agreement under the same conditions as prescribed in this rule where there has not been a relevant material change since the date of its issue. A request for such renewal shall be made in writing to the competent authority during the six (6) months preceding the expiry of the relevant advance pricing agreement. The competent authority shall obtain the agreement of the other competent authorities involved before confirming such a renewal. A non-refundable fee of two thousand euro (€2,000) shall be paid when making a request for a renewal of an advance pricing agreement. Except for the provisions of sub-rule (4), the provisions of this rule shall also apply to a request for a renewal of an advance pricing agreement.