Principles for the examination of the distribution of income between related parties in cross-border business relationships with a view to the obligation to investigate, cooperate, correct and mutually agree and EU arbitration (Administrative Principles procedure) The OECD publishes statistics on mutual agreement procedures of OECD Member States under the heading “MAP Statistics”. A MAGP can be invoked by taxpayers so that one country, in agreement with the other country, can eliminate cases of double taxation resulting from the actions of the tax administration of the other country. Jurisdiction of the BZSt for mutual agreement procedures, arbitration and A.A. In addition, the European Arbitration Convention provides for a mutual agreement procedure for the distribution of profits between affiliated companies and for permanent establishments. If Member States cannot agree on the elimination of double taxation within two years, a special arbitration procedure for the elimination of double taxation is necessary. The mutual agreement procedure (MAP) is a judicial procedure independent of national remedies. It aims to eliminate double taxation of taxpayers. There are clear and often long deadlines within which the WFP can be requested. In particular, the second sentence of Article 16(1) of the MLI provides that the POPs case must not be brought within a certain period, that is to say, less than three years from the first filing of the tax action, in accordance with the provisions of a tax treaty concerned. This means that taxable persons may not bring their case within three years of the first notification of the action giving rise to the taxation in accordance with the provisions of the tax treaty concerned. The first notification is generally considered to be the final assessment at the end of a tax or similar application. The mutual understanding clauses of most DTCs contain specific deadlines for the submission of applications.

The double taxation agreement is available on the website of the Federal Ministry of Finance. In OECD Member States, the average processing time for POPs is around two years. The MAGP is divided into a first written phase between the competent authorities concerned, during which the tax authorities present their respective positions, followed by a second phase of negotiations at joint committee meetings. As the MAGP is a semi-circular procedure, the taxpayer does not have the right to consult the written exchange between the competent authorities of the States and does not participate in the negotiations himself. At the end of the MAGP, the competent authority to which the taxpayer originally referred the case informs it of the outcome decided by the authorities of both States. .