Pricing agreement with the tax committee
A legal entity – resident of Uzbekistan having a status of a large taxpayer has the right to apply to the tax committee with an application to conclude a pricing agreement.
A pricing agreement is an agreement between a taxpayer and the tax committee on the procedure for determining prices or applying pricing methods in controlled transactions for tax purposes.
The purpose of the pricing agreement is to apply market prices in transactions carried out by the taxpayer.
The subject of the pricing agreement may be:
- types or lists of controlled transactions and goods (services) in relation to which a pricing agreement shall be concluded
- the procedure for determining prices or the description and procedure for applying pricing methods (formulas) for tax purposes
- a list of sources of information used to determine whether transaction prices comply with the terms of the pricing agreement
- the duration of the pricing agreement
- the list, procedure and deadlines for submitting documents confirming the fulfillment of the terms of the pricing agreement
Duration of a pricing agreement
A pricing agreement may be concluded for a period not exceeding 3 years.
The pricing agreement shall enter into force on January 1 of the calendar year following the year in which it was signed, unless otherwise provided directly in the pricing agreement.
The taxpayer, if it complies with all the terms of the pricing agreement, has the right to apply to the tax committee with an application to extend the duration of the pricing agreement.
The pricing agreement may be extended for no more than 2 years.
Procedure for concluding a pricing agreement
The taxpayer shall submit the following documents with an application to the tax committee for concluding a pricing agreement:
- draft pricing agreement
- documents relating to the taxpayer's activities related to controlled transactions
- copies of the taxpayer's constituent documents
- a copy of the certificate of registration of the taxpayer
- the taxpayer's financial statements for the last reporting period
- other documents containing information that is relevant when concluding a pricing agreement
The Tax Committee shall review the application and other documents submitted by the taxpayer within a period of no more than 6 months from the date of their receipt. This period may be extended to 9 months.
Based on the results of reviewing the documents, the tax committee makes one of the following decisions:
- to enter into a pricing agreement
- to refuse to enter into a pricing agreement
- to revise the draft pricing agreement
In the event of changes in tax legislation that affect the taxpayer’s activities and pricing, the parties to the pricing agreement have the right to make appropriate changes to the text of the pricing agreement.