Contents

This section describes the requirements of a MAP request submitted by a taxpayer who believes that the actions of the tax authorities of one or both states have resulted or will result in taxation that is contrary to the provisions of the DTC.

The section covers the following aspects:

  • The basis for the taxpayer’s request;
  • Submission of a request;
  • Time limit for the submission of a request;
  • Minimum requirements of a request;
  • Fees.

The basis for the taxpayer’s request

A taxpayer may request the competent authority in either contracting state to initiate a MAP with the competent authority of the other state. The taxpayer must show that the actions of the tax authorities of one or both states have resulted in or will result in taxation that is contrary to the provisions of the DTC. If no final tax assessments have been made of the income in question, the taxpayer must demonstrate there is a substantiated risk that he/she may be subject to double taxation.

A binding tax ruling that is expected to result in double taxation may form a sufficient basis for a MAP request.

MAP may also be applied in cases where there are no issues of double taxation as long as the contested taxation conflicts with the provisions of the DTC. For instance, this may be the case where an income is taxed in one state even though, according to the DTC, it is only taxable in the other state. This applies even if the other state cannot exercise its taxing rights in accordance with national rules. See paragraph 13 of the commentary on Article 25 of the OECD Model Tax Convention.

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Please note

The taxpayer may submit a MAP request even if the tax authorities have not sent any notice of the tax assessment or collection of the tax which the taxpayer considers to be contrary to the provisions of the DTC. See paragraph 14 of the commentary on Article 25 of the OECD Model Tax Convention.

Submission of a request

The request must be submitted to the competent authority of one of the contracting states. . This applies irrespective of whether the taxation objected against was levied in one or the other state, and regardless of whether or not it has given rise to double taxation. See paragraph 17 of the commentary on Article 25 of the OECD Model Tax Convention.
The Danish Customs and Tax Administration is authorised to make decisions relating to the DTCs as the competent authority. Such decisions cannot be appealed to another administrative authority. See Danish Executive Order no. 1029 of 24 October 2005. The time limit for submitting a MAP decision for review by the courts is three months from the date of the decision. See Section 48(3) of the Danish Tax Administration Act (Skatteforvaltningsloven). This also applies to decisions to reject a MAP request.

Both natural and legal persons must submit their MAP requests to the following addresses:

  • Cases regarding Article 7 and Article 9 of the OECD Model Tax Convention:

Danish Tax Agency, Large Companies - Competent Authority,
Hannemanns Allé 25
2300 Copenhagen S
Denmark

or by e-mail to store-selskaber-sikker-post@sktst.dk

  • All other cases:

Danish Tax Agency, Law Department - Competent Authority,
Hannemanns Allé 25
2300 Copenhagen S
Denmark

or by e-mail to juraskat@sktst.dk 

Please note

The case need not have been through the national appeals bodies before a request for MAP is submitted. See paragraph 31 of the commentary on Article 25 of the OECD Model Tax Convention.

Please note

If the request concerns taxation that is deemed discriminatory under Article 24(1), the request may be submitted to the competent authority of the state in which the taxpayer is a citizen. See paragraph 18 of the commentary on Article 25 of the Model Tax Convention.

Time limit for submitting a request

A MAP request must be submitted within three years of the first notification of the action giving rise to taxation which is not in accordance with the DTC. According to Danish rules, the tax must have been assessed before the three-year time limit period commences. See paragraph 21 of the commentary on Article 25 of the OECD Model Tax Convention.

Please note

Individual DTCs may provide different time limits for the submission of a request. If a time limit is not indicated, the time limit provided by Article 25(1) of the OECD Model Tax Convention generally applies.
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Please note

The time limit for submitting a request will not be deferred because the assessment is under administrative appeal or judicial review.

Minimum requirements of a request

Article 25 of the OECD Model Tax Convention does not set out specific requirements as to the form of a MAP request. Danish law does not prescribe any specific requirements either.

However, in accordance with the general rules governing the filing of a notice of objection against a tax assessment, the request must be substantiated in such a way that the competent authority can decide whether the request can be granted.

In accordance with the OECD’s guidelines - “Manual on Effective Mutual Agreement Procedures (MEMAP)" - a request must include as a minimum:

  • The taxpayer’s name, address and CPR number (civil registration number) or CVR number/SE number (business registration number/VAT number);
  • The identity of the tax authority of the other state which has made, or is expected to make, a tax assessment in contravention of the DTC (if applicable);
  • The relevant income years;
  • A description of the facts and circumstances of the case, including a quantification of the income in question;
  • The articles of the DTC which the taxpayer believes are not applied properly;
  • The taxpayer’s perception of how the DTC should be interpreted;
  • Details of any prior request to other competent authorities on the same issue;
  • Details of any notice of objection against the tax assessments in question;
  • If relevant, a statement of consent that the Danish Tax Agency may address an authorised agent. See SKM2008.848.SKAT.
  • Details of any submission of the request to other authorities
  • An undertaking from the taxpayer to respond as completely and quickly as possible to all reasonable and appropriate requests made by a competent authority and have documentation at the disposal of the competent authorities.

Additionally, in particular in transfer pricing cases:

  • Taxpayer identification number of other taxpayers involved
  • A description of the controlled transactions and of how intra-group pricing is determined.

Fees

The taxpayer is not charged any fees for submitting a request for MAP.

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