On 19 November 2021, the tax authorities have issued a guide and questions and answers (Q&As) on mutual agreement procedures (MAPs) to provide taxpayers with guidance on the main aspects of MAP.

The Q&As clarified that the Spanish competent authority will allow or reject the MAP application within 6 months from its receipt. The request will be considered as admissible if no response is received after such a period, unless an extension, correction or change was required. It was also clarified that the taxpayer can request the suspension of the debt and the surcharges during the MAP procedure if a guarantee is provided and such a suspension could not be requested in the administrative or judicial process. The Q&As describe the taxpayer’s rights: to initiate the MAP, to be informed about the status of the MAP process and to be heard about the case. It also describes the taxpayer’s rights: to initiate the MAP, to be informed about the status of the MAP procedure and to be heard about the case.

The guide states that the MAP can be terminated by: (i) an agreement between the countries concerned; (ii) the withdrawal by the taxpayer; or (iii) a final Spanish judicial decision binding the tax authorities in relation to any such MAP. In addition, the guideline describes the deadlines for the arbitration procedure and the formation of the advisory committee at the request of the taxpayer (according to DTA and guideline procedures) or the state that originally issued the tax adjustment (according to the arbitration agreement), unless otherwise agreed between the states involved.