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Unilateral Advance Pricing Agreement
"I need a Unilateral Advance Pricing Agreement for my Irish technology subsidiary that licenses software IP from our US parent company, to be effective from January 2025, with particular attention to industry-standard royalty rates and the impact of rapid technological changes."
1. Parties: Identification of the taxpayer and the Irish Revenue Commissioners
2. Background: Context of the application, including brief description of the business and proposed covered transactions
3. Definitions: Key terms used throughout the agreement, including technical transfer pricing terms
4. Scope of the Agreement: Specific transactions, products, or services covered by the APA
5. Term of Agreement: Duration of the APA, including start and end dates
6. Transfer Pricing Methodology: Detailed description of the agreed transfer pricing method and how it will be applied
7. Critical Assumptions: Fundamental assumptions upon which the APA is based
8. Annual Compliance Requirements: Reporting and documentation requirements to demonstrate compliance
9. Record Keeping Obligations: Specific records that must be maintained to support the APA
10. Revision and Cancellation: Circumstances and procedures for modifying or terminating the agreement
11. Confidentiality: Provisions regarding the confidential treatment of information
12. Governing Law: Confirmation of Irish law as the governing law of the agreement
1. Renewal Provisions: Used when parties want to include specific terms for potential renewal of the APA
2. Rollback Provisions: Included when the methodology may be applied to previous tax years
3. Dispute Resolution: Included when specific dispute resolution procedures are needed beyond standard legal remedies
4. Force Majeure: Used when specific extraordinary circumstances need to be addressed
5. Related Party Transactions: Included when multiple related entities are involved in the covered transactions
6. Industry-Specific Provisions: Used when particular industry considerations need to be addressed
7. Compensating Adjustments: Included when specific procedures for making transfer pricing adjustments need to be detailed
1. Schedule 1 - Covered Transactions: Detailed description of all transactions covered by the APA
2. Schedule 2 - Transfer Pricing Methodology Details: Technical details of the methodology, including calculations and examples
3. Schedule 3 - Critical Assumptions Detail: Comprehensive list and explanation of all critical assumptions
4. Schedule 4 - Annual Reporting Template: Template for required annual compliance reports
5. Appendix A - Financial Data: Historical financial data and projections supporting the proposed methodology
6. Appendix B - Functional Analysis: Detailed analysis of functions, assets, and risks of all parties
7. Appendix C - Comparability Analysis: Details of comparable transactions or companies used in the analysis
8. Appendix D - Organization Structure: Corporate structure and relationships between relevant entities
Authors
Technology
Pharmaceuticals
Manufacturing
Financial Services
Telecommunications
Consumer Goods
Energy
Automotive
Life Sciences
Media and Entertainment
Professional Services
Software Development
Tax
Finance
Legal
Treasury
Transfer Pricing
International Tax
Corporate Development
Financial Planning & Analysis
Compliance
Risk Management
Strategic Planning
Tax Director
Chief Financial Officer
Transfer Pricing Manager
International Tax Manager
Head of Tax
Finance Director
Tax Counsel
Corporate Controller
Treasury Manager
Financial Planning Manager
Compliance Officer
Tax Partner
Managing Director
Chief Executive Officer
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