US Outbound: IRS Issues APA Statistics for 2016

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

US Outbound: IRS Issues APA Statistics for 2016

intl-updates-small.jpg
foley.jpg
Taheri

Sean Foley

Cameron Taheri

On March 27 2017, the Internal Revenue Service (IRS) Advance Pricing and Mutual Agreement (APMA) Programme issued its annual report on advance pricing agreements (APA) statistics for 2016 contained in Announcement 2017-03. The highlights include:

  • The number of executed APAs in 2016 was 86 – compared to 110 in 2015, 101 in 2014, and 145 in 2013;

  • The median completion time for unilateral and bilateral APAs was 32.8 months for new APAs and renewed APAs combined, which is a slight increase from the prior year;

  • APAs with Japan (54%) and Canada (20%) comprised 74% of all bilateral APAs executed in 2016, which is consistent with prior years;

  • APAs with a non-US parent and a US subsidiary comprised 65% of all bilateral APAs executed in 2016, which is consistent with prior years;

  • For those APAs executed in 2016, the comparable profits method/transactional net margin method was used in 89% of APAs involving tangible and intangible property and 76% of APAs involving services;

  • The number of APA requests decreased from 183 in 2015 to 98 requests in 2016, which is more in line with the 108 APA requests made in 2014;

  • The number of APA requests with India was 34% and 31% of APA requests were with Japan;

  • The number of APAs withdrawn was 24 during 2016, compared to 10 in 2015; and

  • The number of executed APAs (86) did not surpass the number of applications filed (98) during 2016.

The authors' impressions of the APA statistics include:

  • APA resolutions are down somewhat while APMA focuses on improving the APA process;

  • APA filings have returned to historic levels after last year's exceptionally high filings fuelled by a new IRS APA revenue procedure and concerns driven by the OECD's BEPS project;

  • An unexplained increase in APAs withdrawn; and

  • Japan continues to account for a significant portion of bilateral APAs executed, filed and inventory, with India filings slightly exceeding Japan filings for the first time.

Sean Foley (sffoley@kpmg.com) and Cameron Taheri (ctaheri@kpmg.com), Washington, D.C.

KPMG LLP

Tel: +1 202 533 5588 and +1 202 533 3384

Website: www.us.kpmg.com

more across site & shared bottom lb ros

More from across our site

While it’s great that the OECD is alive to multinationals’ fears of being caught in a compliance trap, the ‘common understanding’ illustrates a worrying lack of readiness
Rising demand for specialist expertise has fuelled the growth in tax partner headcounts, Cain Dwyer found; in other news, Switzerland has been urged to reconsider pillar two
An OECD report on the taxation of the digital economy is expected by the end of 2026, according to the group of nations
Trophy assets are evolving from personal indulgences to structured investments, prompting family offices to prioritise tax efficiency, governance discipline, and cross-border compliance
As demand for complex, cross-border private client counsel spikes, Patrick McCormick sees opportunity in starting from scratch
As part of an exclusive global alliance, KPMG will become one of Anthropic’s ‘preferred consultants’ for private equity
In the second part of this series, the focus shifts to how taxpayers can manage ongoing risks across the lifecycle of cross-border structures
Jurisdictions have moved to ensure that multinationals are not punished for late GIR filings due to a lack of available filing portals or exchange relationships
HMRC’s push for unified tax adviser registration won’t prevent every instance of improper conduct, but it is good for taxpayers and the UK’s reputation
Elsewhere, the UAE’s tax office has issued an update on registration penalties and two firms have been busy making lateral hires
Gift this article