Exchange of Tax Rulings

Key Requirements

Covered categories include rulings on preferential regimes, cross-border unilateral transfer pricing or APA rulings, downward taxable-profit adjustments, permanent establishments and related-party conduits. The scope is defined by the internationally agreed framework; it should not be described as public release of every taxpayer ruling. An applicant should consider relevant cross-border parties and jurisdictions when preparing complete information for the ruling process. The source’s FAQ explains the exchange framework, while the original ruling still applies only under its own terms and factual circumstances.

Identify the Related Jurisdictions and Safeguards

The FAQ requires a recipient jurisdiction to have an exchange-enabling treaty or arrangement, suitable confidentiality and appropriate-use safeguards, and a similar commitment to compulsory spontaneous exchange. General recipient categories include the residence jurisdictions of relevant related transaction parties and the immediate and ultimate parent entities; permanent-establishment rulings also involve the head-office residence jurisdiction. This framework does not mean that every ruling is sent to every country.

For this exchange framework, parties are related at 25% or greater shareholding, including direct or indirect voting rights or equity value, or where a third party meets that level in both. The FAQ extends the threshold to other entities such as partnerships and trusts. A practical ruling file should therefore map ownership and the relevant cross-border transactions, instead of using an unrelated domestic control threshold without checking the framework.

Apply the Ruling-Date Timetable

The current FAQ distinguishes rulings issued before 2025 from those issued on or after 1 January 2025. For the latter, exchange is within six months from issue, and the issue date is the date the taxpayer accepts the ruling. Earlier covered rulings have a different three-month availability-based timetable. Taxpayers are generally not notified if, when or with whom information is exchanged. Retain the acceptance date and complete ruling particulars; absence of an exchange notification does not establish that no exchange occurred.