a. What is a mutual agreement procedure?

Mutual agreement procedures are a mechanism for the resolution of disputes between tax authorities where the action of one of them has given rise to, or could give rise to, taxation that is not in accordance with a Tax Treaty.

That is, in order to initiate a mutual agreement procedure, even if the mechanism provided for in Council Directive (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union is used, there must be an international convention or applicable to the case. That Tax Treaty could be:

• Any of the conventions for the avoidance of international double taxation and preventing tax evasion of income and capital applicable in Spain (https://www.hacienda.gob.es/es-ES/Normativa%20y%20doctrina/Normativa/CDI/Paginas/cdi.aspx).

• The Convention on the elimination of double taxation in connection with the adjustment of profits of associated enterprises, signed in Brussels on 23 July 1990 (Official Gazette of 21 December 1994).