The ITA released on 5 June 2012 Circular 21/E/2012, to provide guidance to local tax offices on the application of Mutual Agreement Procedures (MAPs). According to the Circular the rules governing the MAP process have to be found in the respective double taxation treaties and in the European Union Arbitration Convention.

It is provided that taxpayers are entitled to initiate a MAP process to defend against double taxation prevented by the treaty provisions and the Circular Letter clarifies that taxpayers need to request to initiate this type of MAP process within two years from the date of the notification of the action giving rise to the double taxation.

Taxpayers need to request to initiate this type of MAP process within three years from the date of the notification of the adjustment leading to the double taxation.

In the case of tax fraud, the access to MAP procedure will be prevented.