Einde inhoudsopgave
Treaty Application for Companies in a Group (FM nr. 178) 2022/3.3.5.3
3.3.5.3 Art. 25 OECD MTC: Mutual Agreement Procedure
L.C. van Hulten, datum 06-07-2022
- Datum
06-07-2022
- Auteur
L.C. van Hulten
- JCDI
JCDI:ADS659354:1
- Vakgebied(en)
Omzetbelasting / Plaats van levering en dienst
Voetnoten
Voetnoten
The provision contains various procedural rules, such as rules on the period within which the double taxation must be raised.
Commentary on art. 25 OECD MTC, par. 1.
Commentary on art. 25 OECD MTC, par. 3. The provision can also be invoked in situations without any effective double taxation, but where the taxation is not in line with the agreements in the treaty (E. Reimer et al., Klaus Vogel on Double Taxation Conventions, Alphen aan den Rijn: Kluwer Law International 2022, p. 2047).
Commentary on art. 25 OECD MTC, par. 10. See also par. 3.3.3.5.
For the sake of completeness, the Commentary on art. 25 OECD MTC also gives an example of a multilateral MAP that may occur within a multinational group (Commentary on art. 25 OECD MTC, par. 38.3).
Commentary on art. 25 OECD MTC, par. 9.
The MAP is set out in art. 25 OECD MTC1 and is meant to solve difficulties arising from the application of tax treaties in the broadest sense of the term.2 The provision applies, inter alia, to situations where double taxation persists after a tax treaty has been applied.3 Thus, one of the aims of art. 25 OECD MTC is to resolve situations of juridical double taxation that have not been resolved through application of the treaty. As such, the provision contributes to the main objective of the OECD MTC. Art. 25 OECD MTC also aims to provide for the avoidance of economic double taxation between associated enterprises within the meaning of art. 9 OECD MTC.4
Logically, art. 25 OECD MTC as such does not include a group approach. The Commentary5 indicates that a MAP often concerns double taxation in the context of the application of art. 9, art. 11, par. 6, and art. 12, par. 4, OECD MTC.6 All three of the above provisions apply in the case of group companies.