Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

advance pricing arrangement (APA)

The ways that transfer prices should be reached in particular situations are sometimes agreed between tax authorities and taxpayers for a period of time covering more than one year. Most often two tax authorities will reach a bilateral APA in relation to transactions by a taxpayer between the two countries. Sometimes a multilateral APA will cover discussions concluded between three or more countries.