CBDT Sets Record with Unprecedented 174 Advance Pricing Agreements in FY 2024-25

The Central Board of Direct Taxes (CBDT) signed a record 174 Advance Pricing Agreements (APAs) in the financial year 2024-25, reaching a total of 815 APAs since the program's inception. This includes a diverse mix of unilateral, bilateral, and multilateral agreements, underscoring India's commitment to transfer pricing certainty.

The Central Board of Direct Taxes (CBDT) has set a new benchmark by entering into a remarkable 174 Advance Pricing Agreements (APAs) with Indian taxpayers in the fiscal year 2024-25. This includes a combination of Unilateral APAs (UAPAs), Bilateral APAs (BAPAs), and Multilateral APAs (MAPAs), culminating in a total of 815 APAs since the initiative's inception.

This achievement marks the highest number of APAs signed in a single fiscal year, surpassing previous records with 65 BAPAs finalized. These were crafted through mutual understandings with several of India's treaty partners, such as Australia, Japan, South Korea, The Netherlands, New Zealand, Singapore, the UK, and the US.

Despite the global backdrop of financial challenges, CBDT continues its consistent pace, signing 125 APAs in FY 2023-24 and 95 in FY 2022-23, notably including India's first-ever MAPA this year. The APA program, aiming to deliver transfer pricing certainty, aligns with India's mission to foster a business-friendly environment for multinational companies involved in international transactions.