For companies, the legal basis for mutual agreement procedures may also be the EU arbitration agreement. For more information, see the section on cartel procedures for companies. Mutual agreement procedure (MAGP) – is the procedure implemented in the context of international contracts and applied by the competent authorities in accordance with the interpretation and application of the provisions of tax treaties or the Double Taxation Elimination Convention with regard to the correction of profits of affiliated enterprises (arbitration convention) when a tax subsidy outside the scope of the tax convention or convention the question of the elimination of double taxation. The mutual agreement procedure (MAGP) remains the most widely used and best used means of eliminating double taxation. For more than two decades, the OECD and the EU have had an interest in improving the efficiency of the exploitation of LDCs through various instruments. After BEPS, the incidence of double taxation increases and the number of LDCs continues to increase. There is a growing emphasis on improving dispute settlement techniques in order to eliminate double taxation more effectively. This article presents some functions of the instruments currently available. As a general rule, the application must be submitted within a time limit set by the DBA. If the applicable DBA does not provide for a time limit for requests, a time limit is indicated in the Memorandum on Mutual Agreement Procedures (subsection 2.2.3). In addition, the European Arbitration Convention provides for a procedure for agreeing on the distribution of profits between affiliated undertakings and permanent establishments.

If, within two years, Member States fail to agree on the elimination of double taxation, a specific arbitration procedure is required to eliminate double taxation. The agreement clauses of most A.A. provide for specific deadlines for the filing of applications. The double taxation agreement is available on the website of the Federal Ministry of Finance. For the purchase of goods and services, VAT (VAT) must be paid in many countries. The input VAT refund procedure allows businesses, embassies/consulates and international organisations to . There are clear and often long deadlines within which the MAGP can be requested. In particular, the second sentence of Article 16(1) of the MLI provides that the POP case must be brought within a specified period, that is to say, less than three years from the first declaration of the tax action, and not in accordance with the provisions of a classified tax convention. This means that taxable persons cannot submit their case within three years of the first notification of the appeal leading to taxation, in accordance with the provisions of the covered tax treaty. The first communication is generally considered to be the definitive taxation at the end of a tax application or similar.

Taxpayers who consider that their taxation is contrary to a DBA or the European Arbitration Convention may apply for an agreement procedure. . . .