Advance tax ruling

(ATR).

An advance tax ruling is a written confirmation by a tax authority of its interpretation of the tax law applying to a proposed transaction.

In relation to major transactions, the parties may make the obtaining of a favourable advance tax ruling a precondition to completing the transaction.

Sometimes also known as 'tax clearance' or 'pre-clearance'.

See also

• Transfer pricing
• Tax ruling
• Tax transparency initiative
• Base erosion and profit shifting
• Clearance