이전가격 사전승인제도 활성화 방안

A Study on the Improvement of Advance Pricing ApprovalThe advance pricing approval provision is designed as an alternative dispute resolution that supplements the traditional administrative, judicial and treaty mechanism for resolving transfer issues. The APA reduces burdens for taxpayers and the tax authorities. The purpose of the APA is to promote voluntary compliance by assuring taxpayers that the transfer pricing methodology they use to establish transfer prices are acceptable. An APA prospectively confirms an appropriate transfer pricing methodology and its application to specific cross border non-arm's length price transactions for a specified term.The APA was introduced in the Coordination of International Tax Affaires Law which was promulgated by law n 4981 on 6 December 1995 and go into effect on or after 1 January 1997. At present, 13 APA requests are under examination.The APA provision is Korean resident driven and only applicable to international transaction. It process begins when the resident requests an APA to National Tax Services. A resident intending to apply for an APA applicant must provide a detailed explanation and analysis of eaxh proposed transfer pricing methodology, as well as the facts and circumstances on which it is based, and set out the reasons why the proposed transfer pricing methodology is appropriate to the situation.It is requested that the pre-file conference should be adopted to avoid a secret problem for the taxpayers. And the APA provision should be applied to small business enterprises. Also, domestic transactions should be subjected advance SIGA approval provision.