Mutual Agreement Procedure Svizzera

Mutual agreement procedure (MAP) is a dispute resolution mechanism used in international tax treaties to resolve disputes between two or more countries regarding the interpretation or application of the treaties. The MAP aims to ensure that double taxation does not occur, and that the countries involved avoid any unnecessary litigation.

Switzerland is a country with a highly developed economy and a large number of international companies, which often leads to international tax disputes. To address such disputes and to avoid double taxation, Switzerland has entered into several double taxation treaties with other countries, including the United States, Germany, and the United Kingdom.

The MAP in Switzerland is governed by Article 25 of the OECD Model Tax Convention, which stipulates that the competent authorities of the countries involved shall endeavour to resolve the dispute by mutual agreement. The competent authorities in Switzerland are the Federal Tax Administration (FTA) and the cantonal tax authorities.

The MAP in Switzerland is available to taxpayers who experience taxation issues not resolved by the domestic tax authorities. Taxpayers can initiate the MAP by filing a written request to the competent authority within three years after receiving notification of the action giving rise to the taxation issue.

One of the advantages of the MAP in Switzerland is that it is a flexible and confidential procedure that is tailored to each specific case. The competent authorities of the countries involved in the MAP are required to reach a mutual agreement within two years of receiving a request for assistance. If they are unable to reach an agreement within this timeframe, the taxpayer can take the case to arbitration.

The MAP in Switzerland is an effective mechanism to resolve international tax disputes and to avoid double taxation. With its flexible and confidential procedure, it protects the rights of taxpayers and ensures a fair and just resolution of taxation issues. Therefore, it is important for international companies and individuals conducting business in Switzerland to be aware of the MAP and to consider it as an option for resolving tax disputes.