- Certainty: They provide certainty regarding the tax treatment of intercompany transactions. - Avoidance of Double Taxation: Bilateral and multilateral APAs help prevent double taxation by ensuring consistent tax treatment across jurisdictions. - Reduced Compliance Costs: APAs can reduce the costs associated with transfer pricing documentation and disputes. - Improved Relationships with Tax Authorities: Engaging in the APA process can foster a more cooperative relationship with tax authorities. - Risk Management: By addressing transfer pricing issues proactively, APAs can help manage and mitigate tax risks.