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). 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. Jurisdiction of the BZSt with regard to mutual agreement, arbitration and APAs procedures Find the double taxation agreement on the website of the Federal Ministry of Finance. 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. 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). The memorandum contains detailed information on how reciprocal procedures and arbitration procedures are conducted in Germany. 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. 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.