2024-09-04 12:04:50
For the first time in Armenia, a transfer pricing check will be carried out. A meeting was held in the State Revenue Committee with the representatives of “Veolia Water” CJSC, according to which the company will participate in the pilot project, the SRC informs.
Employees of the State Revenue Committee and the Italian Tax Service will conduct a joint pilot audit, which will not cause any tax consequences for the organization. The pilot audit planned within the framework of the “Tax Inspectors Without Borders” program of the Organization for Economic Cooperation and Development will enable the Armenian tax authority to develop the capabilities of carrying out transfer pricing audits with the support of Italian partners. At the same time, it will be instructive for “Veolia water” CJSC in terms of submitting notifications to the tax authority about controlled transactions and being informed about other regulations.
The choice was made from among 15 organizations initially identified as a result of risk analysis. The pilot test will be conducted according to the actual test rules. the relevant documents will be studied, the risks will be highlighted as a result of the analyzes and will be discussed with the taxpayer.
The program is one of the primary measures for SRC aimed at increasing the voluntary discipline of taxpayers. It is distinguished by the high level and transparency of tax authority-tax payer cooperation.
Edward Hovhannisyan, Chairman of the RA State Revenue Committee, and Marianna Shahinyan, General Director of “Veolia Water” CJSC, signed a memorandum to start the process.
Transfer pricing regulations in Armenia are effective from January 1, 2020. The pilot verification program will serve as a basis for introducing the transfer pricing verification system and later conducting actual verifications.