Exploratory study of the influence of advance pricing agreements on the tax planning of multinational companies established in Morocco

Abstract

This exploratory study investigates the influence of advance pricing agreements (APAs) on the tax planning strategies of multinational companies operating in Morocco. The research aims to understand how APAs influence transfer pricing practices and their role in minimizing tax avoidance risks. The study employs a qualitative approach, conducting face-to-face interviews with accountants and tax experts. The collected data is analyzed using textometric analysis, with the support of IRAMUTEQ software, to identify key themes and insights. The findings reveal that APAs significantly enhance compliance with the arm's length principle, reduce the likelihood of disputes during tax audits, and provide legal certainty for multinational companies. They play a critical role in addressing complex transactions such as margin transfers and hidden distributions, thereby mitigating tax risks. Additionally, APAs strengthen collaboration between tax authorities and businesses, fostering trust and stability in the tax planning process. The study highlights the practical benefits of integrating APAs into the Moroccan tax framework, emphasizing their role in reducing tax avoidance risks, ensuring compliance, and creating a predictable fiscal environment for multinational operations.