Plans to reform transfer pricing legislation announced

On 13 December 2006, the Deputy Minister of Finance, Sergey Shatalov, in a conference organized by the Association of European Businesses, announced plans to reform the Russian transfer pricing legislation in 2007-2008.

At present, transfer pricing provisions in Russia apply as summarized below.

The Tax Code allows the tax authorities to impose arm's length prices and to recharacterize the nature of transactions. In general, the price of the t…