India Sets Record with 174 Advance Pricing Agreements in 2024-25

The Central Board of Direct Taxes announced a record 174 Advance Pricing Agreements with Indian taxpayers in the 2024-25 fiscal year, providing significant tax certainty in transfer pricing. These agreements include Unilateral, Bilateral, and the first-ever Multilateral APAs, emphasizing enhanced ease of doing business in cross-border transactions.

In an unprecedented move, the Central Board of Direct Taxes (CBDT) has announced the signing of a record 174 Advance Pricing Agreements (APAs) during the financial year 2024-25 with Indian taxpayers, securing tax certainty for international transactions.

The APAs, which include Unilateral, Bilateral, and India's first Multilateral agreement, aim to streamline transfer pricing by establishing pre-determined pricing methods for up to five years. This fiscal achievement underscores India's commitment to easing business operations for multinational enterprises.

The CBDT highlighted the collaborative efforts with treaty partners such as Australia, Japan, and the US, and acknowledged the constructive role of taxpayers in achieving this milestone, aligning with the government's mission to enhance the ease of doing business.

(With inputs from agencies.)