Contents

This section explains which cases can be resolved based on the mutual agreement procedure. See Article 25(1) of the OECD Model Tax Convention.

The section contains the following:

  • The MAP rule
  • International juridical double taxation
  • International economic double taxation
  • MAP at the request of a taxpayer
  • MAP regarding issues of general interpretation
  • MAP regarding the avoidance of double taxation in other cases
  • Complaints management under internal rules

The MAP rule

The aim of the MAP is to divide the right of taxation between states that have concluded a double taxation convention (“DTC”) in cases where double taxation of income cannot immediately be avoided through application of the DTC.

International juridical double taxation

International juridical double taxation arises when two (or more) states subject the same taxpayer to tax on the same income.
(Examples not translated)

International economic double taxation

Economic double taxation means subjecting two different taxpayers to tax on the same income. Generally, the OECD Model Tax Convention does not cover issues of economic double taxation.

Transfer pricing

However, the MAP may also be used to address cases of economic double taxation covered by Article 9 (transfer pricing) as regards the determination of whether transfer pricing adjustments to controlled transactions are justified, and as regards the determination of the amount of such adjustments. See paragraph 10 of the commentary on Article 25 of the OECD Model Tax Convention.

(References - not translated)

MAP at the request of a taxpayer

If a person believes that the tax authorities of one or more states have taken measures, which will result in taxation that is not in accordance with the provisions of a DTC, the taxpayer may present his case to the competent authority in either of the contracting states.

(References - not translated)

(Examples - not translated)

MAP regarding issues of general interpretation

The competent authorities are authorised to make mutual agreements to resolve issues regarding the interpretation or application of a DTC. These agreements relate to issues of a general nature which may originate from a specific case.
It is not possible to amend or broaden the scope of an existing DTC by general mutual agreement. Any such changes can be made only on the basis of an amending protocol which is implemented in accordance with the constitutional rules of each of the contracting states.
(Examples - not translated)

MAP regarding the avoidance of double taxation in other cases

The competent authorities are authorised to consult with each other on the elimination of double taxation in situations which are not covered by a DTC.

Handling of complaints under national law

A taxpayer may present a case to the competent authority in either of the contracting state, regardless of whether the case is subject to an administrative appeal or judicial review.
Taxpayers should avail themselves of the opportunities provided by national legislation for the submission of complaints or for legal action alongside the MAP process. The initiation of MAP does not defer the domestic time limits for filing complaints. Cases submitted for review domestically may be suspended until the end of MAP negotiations.

(References - not translated)

(Overview of decisions related to the subject - not translated)