In this article from BNA’s Transfer Pricing International Journal, NERA Vice President Dr. Vladimir Starkov provides a brief overview of the final draft of the law containing the new Russian transfer pricing regulations, which was approved by the lower house of the Russian parliament on 8 July 2011 following a long deliberation period. The law contains definitions of related parties, controlled transactions, and transfer pricing methods; lists sources of information to be used by the tax authorities and taxpayers in selecting comparable transactions and comparable companies; provides recommended profit level indicators; and defines the method of calculating the arm’s length range of prices and profits. The law also discusses the content of transfer pricing documentation for penalty avoidance and conditions for taxpayers to enter in advance pricing agreements with the Russian tax authorities. The effective date of the law is 1 January 2012.