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. 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. In the vast majority of cases, countries reach an agreement. 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. Requests for mutual agreement under a DBA or the European Arbitration Agreement may be addressed at the following address: The procedure of mutual agreement can be applied in situations where double taxation must be eliminated. 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. The BZSt does not collect royalties for mutual agreement procedures (with the exception of prior price agreements; see fact sheet on advance price agreements).
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. 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 double taxation agreement is available on the website of the Federal Ministry of Finance. Jurisdiction of the BZSt for Mutual Agreement, Arbitration and APAs The Memorandum contains detailed information on how mutual agreement and arbitration procedures are implemented in Germany. The OECD publishes, by mutual agreement, statistics on the procedures of OECD member countries under the framework of `POP statistics`. Article 25 contains three distinct areas in which the mutual agreement procedure is generally applied. Subjects who believe that their imposition is contrary to a DBA or the European Arbitration Convention may request a procedure of mutual agreement.
In Germany, the Bundeszentralamt for Steuern (BZSt) is responsible for the implementation of these procedures. Applications for mutual agreement proceedings can therefore be filed directly with the BZSt. As a general rule, non-German resident applicants must submit these applications to the competent authority of their country of residence. The mutual unification process is a proven way of consulting with tax authorities to resolve disputes over the application of double taxation agreements. This procedure, described and approved in Article 25 of the OECD Model Convention, can be used to eliminate the double taxation that could result from an adjustment in transfer prices. 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. For more information on applying for a POP and exceptions for individuals, see Chapter 3.4 of the Tax Administration Guidelines on the Procedure for Mutual Agreement in the Case of International Tax Disputes.