On 22 November 2022 the OECD published the mutual agreement procedure (MAP) statistics for 2021. The report covers 127 jurisdictions and is a part of the work on the minimum standard on BEPS action 14 (improving dispute resolution mechanisms). The statistics were released as part of the Tax Certainty Day activity, as they will help to improve the effectiveness of dispute resolution mechanisms in relation to tax issues.

The statistics indicate that around 13% more MAP cases were closed in 2021 compared to the previous year, including both transfer pricing cases and other cases. This was achieved, despite the restrictions during the pandemic, due to increasing the use of virtual meetings; giving priority to more straightforward cases; and increasing collaboration to apply solutions to common issues across multiple MAP cases. Increases in the numbers and experience of staff enhanced their ability to resolve more cases.

The number of new MAP cases fell by around 3% in 2021 compared to the previous year, mainly due to a decrease of more than 10% in new transfer pricing cases being opened. Around 75% of the MAPs concluded in 2021 fully resolved the relevant issue, a similar percentage to the previous year. Around 2% of the MAP cases were closed without any agreement (compared to 3% in 2020).

The report indicates that the MAP cases closed in 2021 required on average 32 months to be resolved for transfer pricing cases, and around 21 months for other cases. The restrictions during the pandemic affected the quality of communication with treaty partners, and some jurisdictions experienced delays, especially in relation to complex cases.

Competent authorities took steps to ensure that the MAP continued to be available during the pandemic. Towards the end of 2021 there was an increase in MAP engagement with treaty partners. Following the resumption of face-to-face meetings, jurisdictions continued to hold virtual meetings in the periods between face-to-face meetings and this provided further opportunities to progress MAP cases. The use of this hybrid approach can help jurisdictions to generally improve the efficiency of their MAP programmes.

MAP awards 2021

On 22 November 2022 the OECD also published the MAP awards for 2021. Spain achieved the shortest average time for closing transfer pricing MAP cases, among the countries that closed at least 50 cases in the year, with an average time of 19.6 months for 2021. Ireland achieved the shortest average time for closing other (non-transfer pricing) MAP cases, among the countries that closed at least 20 cases in the year, with an average time of 5 months for 2021.

The award for the most effective MAP caseload management went to Ireland and New Zealand. The award for the pair of jurisdictions that handled their joint caseload most effectively went to France and the United States for transfer pricing cases, and to Ireland and Germany for other cases. The award for the most improved jurisdiction, recognising the efforts taken by the competent authorities to resolve MAP cases in 2021, went to Germany. In 2021 Germany closed 144 more cases with positive outcomes compared to 2020.

Tax Certainty Day

During the OECD’s Tax Certainty Day tax officials and stakeholders assessed the tax certainty agenda and considered how to further improve dispute prevention and resolution. The MAP Statistics enable monitoring of these aspects of the minimum standard under BEPS Action 14, to measure progress and highlight areas where further improvement is needed.