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Bilateral Advance Pricing Agreement
"I need a Bilateral Advance Pricing Agreement for my pharmaceutical manufacturing company operating between Nigeria and India, focusing on raw material procurement and licensing arrangements, with the agreement to commence from January 2025."
1. Parties: Identification of the taxpayer, Nigerian Federal Inland Revenue Service (FIRS), and the foreign tax authority
2. Background: Context of the agreement, including business operations and reason for seeking BAPA
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Specific transactions, products, or services covered by the agreement
5. Term of Agreement: Duration of the agreement, including start and end dates
6. Transfer Pricing Methodology: Detailed explanation of the agreed transfer pricing method and how it will be applied
7. Critical Assumptions: Key assumptions underlying the agreement that, if changed, could affect its validity
8. Annual Compliance Requirements: Documentation and reporting requirements to demonstrate compliance
9. Review and Adjustment Procedures: Process for periodic reviews and making adjustments if necessary
10. Confidentiality: Provisions regarding the confidentiality of information shared under the agreement
11. Termination Provisions: Circumstances and procedures for early termination of the agreement
12. Dispute Resolution: Procedures for resolving disagreements between parties
13. Governing Law: Specification of Nigerian law as governing law and relevant international treaties
1. Renewal Provisions: Terms for extending the agreement beyond its initial term, used when parties want to include automatic or conditional renewal options
2. Force Majeure: Provisions for extraordinary events affecting agreement implementation, included when operating in volatile markets or regions
3. Anti-Abuse Provisions: Specific clauses to prevent misuse of the agreement, included when there are specific concerns about potential abuse
4. Compensating Adjustments: Procedures for making tax adjustments in both jurisdictions, included when specific adjustment mechanisms are needed
5. Related Party Transactions: Additional provisions for transactions involving other related entities, included when multiple related entities are involved
6. Currency and Exchange Rate Provisions: Specific provisions for handling currency fluctuations, included when transactions involve multiple currencies
1. Schedule A - Covered Transactions: Detailed list and description of all transactions covered by the agreement
2. Schedule B - Transfer Pricing Methodology Details: Technical details of the pricing methodology, including formulas and calculations
3. Schedule C - Critical Assumptions Documentation: Detailed explanation of all critical assumptions and their basis
4. Schedule D - Compliance Requirements: Specific documentation and reporting requirements with templates
5. Appendix 1 - Financial Projections: Relevant financial projections supporting the transfer pricing methodology
6. Appendix 2 - Organizational Structure: Details of the corporate structure and related parties
7. Appendix 3 - Functional Analysis: Analysis of functions, assets, and risks of involved parties
8. Appendix 4 - Comparable Analysis: Documentation of comparable transactions or companies used in the analysis
Authors
Oil and Gas
Manufacturing
Pharmaceutical
Technology and Telecommunications
Financial Services
Consumer Goods
Automotive
Mining and Natural Resources
Agriculture and Food Processing
E-commerce and Digital Services
Tax
Finance
Legal
Treasury
Compliance
International Business
Corporate Planning
Financial Reporting
Risk Management
Transfer Pricing
Chief Financial Officer
Tax Director
Transfer Pricing Manager
International Tax Manager
Finance Director
Head of Tax
Corporate Controller
Treasury Manager
Legal Counsel
Compliance Officer
Financial Planning Manager
Group Financial Controller
Tax Compliance Manager
International Business Development Director
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