The complexity of the global tax environment has significantly increased in the last years, amongst others with the local implementations of the OECD’s BEPS Action Plan, ATAD I and ATAD II or the OECD’s 2020 Transfer Pricing Guidance on Financial Transactions. As these changes were generally not supplemented by clear administrative guidance and/or case law, they result very often in more uncertainty for taxpayers, including in transfer pricing (TP) matters.

Alain Goebel, Danny Beeton and Benjamin Tempelaere of Arendt & Medernach explain the use of bilateral/multilateral APAs and MAPs and consider how they can be used by taxpayers during times of uncertainty.

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This article focuses on how taxpayers could handle such uncertainty, or the unfavourable results thereof, in their TP matters by either avoiding challenges from local or foreign tax authorities in advance through the filing of an advance pricing agreement (APA) or ex post by engaging into a mutual agreement procedure (MAP). 

I        APAs to eliminate double taxation

II       APA trends

III     MAP

IV     MAP trends

V       CONCLUSION