Definition: Advance Tax Ruling is a concept in taxation where a taxpayer can get a binding ruling about the tax implications of a proposed transaction or arrangement. This is usually done before the transaction is implemented to provide certainty about the tax treatment. Source: Investopedia Source reference: https://www.investopedia.com/terms/a/advance-tax-ruling.asp Additional information: An Advance Tax Ruling is a written interpretation by a tax authority to a taxpayer, which clarifies how the tax law will be applied to a specific transaction or series of transactions. It provides certainty to taxpayers regarding the tax implications of their proposed transactions. The ruling is binding on the tax authority, provided the taxpayer fully and accurately described the proposed transactions and carries them out as described. It is a proactive measure to avoid potential disputes and litigation with the tax authority in the future. Example: For instance, a company planning a merger or acquisition might request an advance tax ruling to understand the tax implications of the deal. The tax authority would then provide a ruling, explaining how the tax law would apply to the proposed transaction. This could include details on how the transaction would be classified for tax purposes, what deductions or credits would be allowed, and how any gain or loss would be treated. LOST view: OV-Digital Public Services Catalogue Identifier: http://data.europa.eu/dr8/egovera/AdvanceTaxRulingBusinessService EIRA traceability: eira:DigitalPublicBusinessService ABB name: egovera:AdvanceTaxRulingBusinessService EIRA concept: eira:ArchitectureBuildingBlock Last modification: 2023-07-27 dct:identifier: http://data.europa.eu/dr8/egovera/AdvanceTaxRulingBusinessService dct:title: Advance Tax ruling Digital Public Service