Plain English
When two countries both tax the same profit, you can ask them to sort it out between themselves. You are not a party to the negotiation — your competent authority argues on your behalf. It is slow, but it is usually the only route to full relief.
Technical definition
Article 25 of the OECD Model permits a person to present a case to the competent authority of either contracting state where actions of one or both states result or will result in taxation not in accordance with the Convention, and requires the authorities to endeavour to resolve the case by mutual agreement.
Why it matters
It is the principal cure for double taxation and, under the BEPS Action 14 minimum standard, jurisdictions have committed to resolving cases within an average of 24 months.
How it works in practice
- 01File the MAP request within the treaty time limit, generally three years from first notification.
- 02Provide the same factual position to both authorities.
- 03Authorities exchange position papers and negotiate.
- 04Agreement is implemented through corresponding adjustment; some treaties add mandatory binding arbitration if no agreement is reached.
Worked example
Protecting the clock
An adjustment is proposed in year one but domestic appeal is expected to run for four years. Filing the MAP request immediately, in parallel with the appeal, preserves treaty access. Waiting for the appeal to conclude can put the case outside the three-year window and forfeit relief entirely.
Common mistakes
- Filing late.
- Presenting inconsistent facts in the two jurisdictions.
- Signing a domestic settlement that bars subsequent MAP access.
Audit red flags
- Treaty without an Article 25(5) arbitration clause on a large case.
- Counterparty jurisdiction with long MAP inventory times.
Documentation & data
Documents to hold
- MAP request and position paper.
- Audit history and adjustment notices.
- Original transfer pricing documentation.
Data you need
- Full audit record.
- Treaty text and any MLI modifications.
- Statute of limitation dates in both states.
Who owns this internally: Group tax controversy lead, working with competent authority.
Jurisdiction notes
- European Union
- The Tax Dispute Resolution Directive adds enforceable deadlines and arbitration for EU-EU disputes.
- Global
- The OECD publishes annual MAP statistics by jurisdiction; review them before choosing MAP over domestic remedies.
Notes by role
Advisors & consultants
Advise clients to file protectively as soon as an adjustment is proposed. It costs little and preserves everything.
Frequently asked
- Does MAP guarantee relief?
- No. Authorities must endeavour to reach agreement; only mandatory binding arbitration, where available, guarantees an outcome.
Sources & status
- Primary source
OECD Model Tax Convention, Article 25
OECD, 2017
- Primary source
BEPS Action 14 Minimum Standard
OECD, 2015
Reference material only, not advice on a specific fact pattern. Reviewed 2026-06-30.
Careers
How this shows up in the job
MAP experience is rare and prized. If your team has a live case, ask to help with the position paper.
Careers in transfer pricing