Safe Harbor Regulations are written into laws for permissible violations. They reduce a person’s liability under law in the belief that the actions were carried out in good faith. The safe harbor announced also determines when a particular rule is not breached.
For example, safe harbor regulations protect a management from SEC rules for projections (financial) made in good faith.
Taxpayers are offered safe harbor for certain transactions by Internal revenue service.
For example, the Indian government has relaxed the transaction limit for availing safe harbor regulations for transfer pricing in India – earlier only Rs.100 crore was allowed, now the limit has been extended to Rs.500 crore.