The Norwegian Government published detailed taxpayer guidance on the mutual agreement procedure (MAP) framework set out in Norway’s tax treaties on 7th February 2018. It is an instrument which shall ensure that states apply the tax treaties correctly.

The guidance covers:

  • General information about mutual agreement procedures (MAP): The guidance is general in nature, but on certain points it provides specific details relevant for cases related to pricing of intra-group transactions.
  • Access to MAP: MAP is available when the taxpayer considers that the actions in one or both of the states result, or will result, for him in taxation that is not in accordance with the tax treaty.
  • Where shall a taxpayer submit a MAP application: It follows from all of Norway’s current tax treaties that an application for MAP must be submitted to the competent authority in the state where the taxpayer is resident.
  • Content of a MAP application: A MAP application must be submitted in writing by letter or e-mail.
  • Time limit for requesting a MAP: If the taxpayer submits an application for a MAP after the expiry of the time limit, the application will be rejected.
  • Initiating a MAP: The Norwegian competent authority will always notify the other state’s competent authority about a received MAP request. A MAP request will not be rejected as unjustified or as having insufficient information without the other state’s competent authority being informed.
  • The taxpayer’s role in the MAP process: A MAP is an intergovernmental arrangement where the competent authorities in both states will try to agree on how to avoid taxation that is not in accordance with the tax treaty.
  • Arbitration in MAP cases: The competent authorities are not obliged to agree on a solution in a MAP case. They are only obliged to endeavour to reach agreement.
  • Conclusion of a MAP agreement and implementation of the solution: When the competent authorities have reached agreement on a solution in the MAP case, this will be presented to the taxpayer. The taxpayer can choose to accept or reject the agreed solution.
  • The interaction between MAP and administrative appeals and lawsuits: The taxpayer can ask for the case to be handled in as a MAP even if the taxpayer has also taken steps to make use of national judicial remedies such as administrative appeals or lawsuits.
  • Recurrent issues and Advance Pricing Agreements.