A Mutual Agreement Procedure
In order to avoid double taxation due to possible measures taken by the tax administrator of another state in connection with the future controlled transaction, it is desirable to ask, by asking for the alignment of the principles of pricing of future controlled transactions and the conclusion of the agreement with the competent authority of another foreign state, in accordance with the provisions of the applicable tax treaty between the Republic of Lithuania and another State, in order to avoid double taxation of income and capital. Once the application has been submitted, the procedure of mutual agreement can be initiated in accordance with the procedure provided for by the acts. 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 mutual agreement reached becomes binding only if the subject approves it in writing, waives the right of appeal and withdraws all pending appeals. BMF letter of October 9, 2018, leaflet on reciprocal international agreements and income and wealth tax arbitrations. This notice replaces the notice of July 13, 2006 – IV B 6-S 1300-340/06 -, BStBl I 2006, p. 461. The provisions of the letter of BMF of 5 April 2017 – IV B 5 – S 1304/0-04 – BBl I 2017, 707 are contained in paragraph 5 of the notice of 9 October 2018. Changes to the previous brochure include paragraph 1.1.3 (the scope of the EU Arbitration Agreement), paragraph 1.4 (coordinated by the competent authority) and paragraph 2.2.2 (information on the deadlines for filing applications in double taxation conventions). 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.
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. Competent Authority (institution) – Tax inspectorate of the Ministry of Finance of the Republic of Lithuania. The permanent working group on the handling of double taxation dispute resolution procedures is responsible for handling all map cases. The point of contact for issues relating to double taxation dispute resolution procedures is: Ms Vaide Riskute, head of the permanent working group on double taxation dispute resolution procedures Contact: Tel. 370 5 2687 847, e-mail: Vaide.Riskute@vmi.lt You will find the double taxation agreement on the website of the Federal Ministry of Finance. There are clear and often long delays in applying for the POP. In particular, Article 16, paragraph 1, second sentence, provides that the MAP case must be brought within a specified period of time, i.e. less than three years from the first notification of the tax measure, and not in accordance with the provisions of a secure tax treaty.
