Use Of Mutual Agreement Procedure

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As a general rule, the application must be submitted within a time frame set by the DBA. If the applicable DBA does not set a deadline for applications, a deadline is indicated in the Memorandum on Mutual Agreement Procedures (subsection 2.2.3). BZSt`s jurisdiction over mutual agreement, arbitration and AAA proceedings In particular, Article 19 mLI provides for binding arbitration when the competent authorities are unable to reach an agreement on the decision of a case within two years of your start. This is a significant restriction on POPs cases in the past, as the competent authorities were only required to try to resolve cases and disputes could be resolved indefinitely. Section 19 ensures that treaty disputes will be resolved within a specified time frame, making the MAP a more attractive option for taxpayers. In addition, sections 20 to 25 provide for the practical functioning of arbitration. In the past, it was often practical constraints or a lack of agreement on how to proceed that blocked the solution. For companies, the legal basis for mutual agreement procedures can also be the EU Arbitration Convention. For more information, please see the section on business-to-business agreement procedures. The memorandum contains detailed information on how reciprocal procedures and arbitration procedures are conducted in Germany. Requests for mutual agreement under a DBA or the European Arbitration Agreement may be addressed at the following address: before applying for a POP, the individual or company must speak with the relevant authorities to determine whether the matter can be resolved in the context of the mutual agreement procedure. The tax administration advises and advises on the choice of the appropriate procedure.

Mutual Agreement Procedure (MAP) – is the procedure implemented in the context of international treaties and applied in consultation with the relevant authorities on 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 subject is (is taxed) outside the scope of the tax contracts or the agreement. to address the issue of eliminating double taxation.

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