The mutual agreement procedures mentioned here are administrative procedures based on the application between two countries. They protect the taxpayer`s right to be taxed under a double taxation agreement (DBA). A DBA is an agreement between two countries that regulates, among other things, the transfer of the right to tax income generated by borders (for example. B, residence in one country and income from the other country). The information needed to present a mutual agreement procedure within the framework of the European Union Arbitration Agreement is coordinated and coordinated “common audits” within the framework of mutual assistance, in addition to the exchange of information on … Under German law, a prior price agreement (APA) is the combination of a prior agreement between countries on the transfer price between international companies linked to … Principles governing the review of income distribution between related persons with cross-border trade relations with respect to the obligation to investigate and cooperate, corrections and mutual agreement and EU arbitration procedures (management principles) 1. www.oecd.org/tax/beps/oecd-releases-2017-global-mutual-agreement-procedure-statistics.htm. 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. In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. If all the conditions are met, the countries concerned try to resolve the tax dispute by mutual agreement. This will generally avoid double taxation. Jurisdiction of the BZSt for mutual agreement, arbitration and APAs Procedures BZSt does not collect royalties for reciprocal agreement procedures (with the exception of pre-price agreements; see fact sheet On prior price agreements).
Of the 16% of closed cases that did not solve the problem, 5% were withdrawn by taxpayers, while 11% were not resolved for various reasons (i.e. no agreement from the competent authorities was found; The objection was not justified; and another result). It should be noted that the OECD methodology is not able to identify cases where access to the MAP has been denied or has not been requested by the taxpayer. The double taxation agreement is available on the website of the Federal Ministry of Finance. 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.