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<h1>Advance Pricing Agreements: Tax Certainty, Reduced Double Taxation Risk, Lower Compliance Costs, and Simplified Record-Keeping.</h1> An Advance Pricing Agreement (APA) offers several advantages in international taxation. It provides tax certainty for the Arm's Length Price (ALP) of covered international transactions, reducing the risk of double taxation through bilateral or multilateral agreements. APAs also lower compliance costs by eliminating the need for transfer pricing audits and resolving lengthy litigation. Additionally, they reduce the burden of record-keeping, as taxpayers are informed in advance of the necessary documentation to support the agreed terms and conditions.