Advance Pricing Agreement provides transfer pricing certainty and reduces double taxation and compliance burden for international transactions. Advance Pricing Agreement (APA) secures transfer pricing certainty by fixing the arm's length price (ALP) for a covered international transaction, aligns jurisdictions through bilateral or multilateral APAs to reduce double taxation risk, lowers compliance costs and dispute exposure by minimizing transfer pricing audits and litigation, and streamlines record keeping since required documentation is defined in advance.