OECD: MAP statistics for 2022 - The Netherlands is a winner

On November 14, 2023 the Organisation for Economic Cooperation and Development (OECD) published statistics on Mutual Agreement Procedures (MAPs) in 133 jurisdictions. The OECD commended successful tax authorities, with the Netherlands playing a prominent role in this.

MAP

Taxpayers sometimes land up in disputes with tax authorities. An instrument to resolve such tax disputes is a MAP, which is initiated between governments for this purpose.

Global OECD 2022 MAP statistics

The 2022 statistics show the following global trends:

The number of new MAP cases opened in 2022 increased by 3% compared to 2021. According to the OECD, this is a positive development after the decrease observed in 2021. The increase also reflects the trust placed in MAPs owing to increased availability and accessibility.

The number of MAPs closed in 2022 increased by 3.5% compared to 2019, and by even as much as 9% compared to 2020. However, the OECD noted that 4% fewer cases were closed compared to 2021, which can be explained by the fact that in 2021 tax authorities had prioritized simpler cases.

The outcomes of the MAPs for 2022 remain generally positive and comparable to 2021. In approximately 73% of the MAPS closed, the issue was resolved, both in transfer pricing cases and in cases dealing with other matters. In only 2% of the MAPs was the case closed without the tax authorities reaching agreement.

Lastly, the OECD included statistics for the average time it takes to complete a MAP. These statistics show that the 24-month target for a MAP came a step closer in 2022. On average it took 25.3 months to close a MAP in 2022, compared to 26 months in 2021. The OECD also noted a positive development with regard to transfer pricing disputes. For the first time ever, the average time needed to close a transfer pricing MAP was under 30 months, i.e. 29 months.

Based on the results, the OECD concluded that although more MAP applications are being submitted, the competent authorities are better able to deal with them.

2022 MAP awards and the Netherlands

The 2022 MAP statistics are based on worldwide results. However there are major differences at the regional and the country level. For example, the global OECD average for both transfer pricing and other MAP cases is 73%. However the success percentage for transfer pricing cases in the Netherlands is already much higher than 73%.

The OECD presented the following MAP awards to a small number of authorities in recognition of their efforts – and the Netherlands was the only country to receive two awards:

• the Netherlands and New Zealand for the shortest time to close MAP cases;
• Canada for the lowest number of pre-2016 cases still to be closed;
• Luxembourg and Norway for the most effective case load management;
• the Netherlands for the number of MAP cases with a positive outcome; this increased by 102 compared to 2021;
• a joint award to the countries that dealt most effectively with their joint caseload, in this case Denmark and Ireland for transfer pricing cases and Germany and Ireland for other cases.

On the same day that these statistics were published, the OECD also published the first edition of Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023. This report contains an overview of published information on MAP cases in each Member State of the OECD/G20 BEPS group; it can be accessed here.

The Tax Controversy market group of KPMG Meijburg & Co helps companies avoid disputes or to resolve them. We are an expert on MAPs and arbitration.