About Mutual Agreement Procedure

The mutual agreement procedure is designed to determine the tax debt between two countries. The partners in the process are therefore the contracting countries concerned. The applicant herself is not part of the proceedings. However, the applicant is regularly informed of the status of the procedure and the status of the procedure. In the vast majority of cases, countries reach an agreement. BMF letter of October 9, 2018, leaflet on reciprocal international agreements and income and wealth tax arbitrations. This notice replaces the notice of July 13, 2006 – IV B 6-S 1300-340/06 -, BStBl I 2006, p. 461. The provisions of the letter of BMF of 5 April 2017 – IV B 5 – S 1304/0-04 – BBl I 2017, 707 are contained in paragraph 5 of the notice of 9 October 2018.

Changes to the previous brochure include paragraph 1.1.3 (the scope of the EU Arbitration Agreement), paragraph 1.4 (coordinated by the competent authority) and paragraph 2.2.2 (information on the deadlines for filing applications in double taxation conventions). Jurisdiction of the BZSt for Mutual Agreement, Arbitration and APA Procedures The OECD publishes statistics on the procedures of OECD member countries under “POP statistics”. Competent Authority (institution) – Tax inspectorate of the Ministry of Finance of the Republic of Lithuania. The permanent working group on the handling of double taxation dispute resolution procedures is responsible for handling all map cases. Contact point for issues relating to double taxation dispute resolution procedures: Ms Vaide Riskute, head of the permanent working group on double taxation dispute resolution procedures. Contact information: Tel. 370 5 2687 847, e-mail: Vaide.Riskute@vmi.lt The Mutual Agreement Procedure (MAP) is a procedure negotiated between the competent authorities of the contracting states of a tax treaty. The aim is to resolve differences in interpretation and eliminate double taxation. Subjects who believe that their imposition is contrary to a DBA or the European Arbitration Convention may request a procedure of mutual agreement. In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. Applications for mutual agreement proceedings can therefore be filed directly with the BZSt. As a general rule, non-German resident applicants must submit these applications to the competent authority of their country of residence.

Procedure of Mutual Agreement (MAP) – is the procedure implemented within the framework of international treaties and applied by the competent authorities in consultation with the interpretation and application of the provisions of the tax treaties or the Convention on the Elimination of double taxation in relation to the adjustment of the profits of associated companies (arbitration agreement) when a tax subject is taxed outside the scope of the tax treaties or the convention to deal with the issue of the elimination of double taxation.

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