The legal basis for a mutual agreement procedure is the DBA concerned. Germany has concluded DBA with more than 90 countries in the world. Most of these DBAs follow the OECD`s draft international agreement. The provisions on mutual agreement procedures are set out in Article 25 of the OECD Model Convention. Recent ABA often contains provisions that prescribe arbitration through an unsuccessful mutual agreement procedure. The Arbitration Convention of the European Union (EU) establishes a procedure for settling transfer pricing disputes for EU member states. This procedure may apply in cases of double taxation between companies in different EU Member States. The OECD publishes, by mutual agreement, statistics on the procedures of OECD member countries under the framework of `POP statistics`. The POP is a means of consulting with the relevant authorities to resolve disputes over the application of double taxation agreements. Article 25 contains three distinct areas in which the mutual agreement procedure is generally applied. The procedure of mutual unification may apply in situations where double taxation must be abolished.
Double taxation means that a person`s or a company`s income has been taxed by the tax authorities of their country of residence and by the tax authorities of another country. In addition, the European Arbitration Convention provides for a procedure of mutual agreement on issues relating to the distribution of profits between associated companies and stable establishments. If Member States are unable to reach agreement on the elimination of double taxation within two years, a specific arbitration procedure to eliminate double taxation is required. Requests to open a procedure for mutual agreement under a DBA or the European Arbitration Agreement can be addressed to the following address: Upon receipt of the application, the BZSt verifies whether the conditions for the application of a mutual agreement procedure are met. The transnational part of a mutual agreement procedure is only implemented if the request is admissible and duly reasoned and if a satisfactory solution is not possible in Germany. The memorandum contains detailed information on how reciprocal procedures and arbitration procedures are conducted in Germany. Before applying for a MAP, the individual or company should speak with the appropriate authorities to determine if the problem can be resolved as part of the mutual agreement procedure. The tax administration advises and advises on the choice of the appropriate procedure.
VAT (VAT) must be paid for the purchase of goods and services in many countries. The VAT refund procedure offers businesses, embassies/consulates and international organisations the … “Common audits” are coordinated bilateral and multilateral tax controls that can be carried out within the framework of mutual assistance, at the same time as the exchange of information on … Jurisdiction of the BZSt for Mutual Agreement, Arbitration and APAs Procedure 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. The mutual agreement clauses of most DBAs contain specific deadlines for submitting applications. The double taxation agreement is available on the website of the Federal Ministry of Finance. The Council`s European Directive on Mechanisms for the Settlement of Tax Disputes in the European Union provides a means of resolving cross-border tax disputes. This decision takes effect in Ireland by S.I. No. 306/2019.
The regulation applies to litigation arising from future tax years as of January 1, 2018. Where measures taken by one or more countries lead to non-DBA taxation (particularly in the area of double taxation), the taxpayer concerned may request a procedure of mutual agreement.