c. Agreement between competent authorities

The mutual agreement procedure may terminate by means of an agreement between the competent authorities of the states involved.

The agreement may result in the elimination of the double taxation or taxation not in accordance with the convention and it may be reached at a face-to-face meeting between the competent authorities or remotely, by email, videoconference, conference call, etc.

Once the agreement has been reached, in the case of mutual agreement procedures relating to transfer pricing and attribution of profits to the permanent establishment, in Spain, the Head of the International Taxation Office adopts the relevant administrative decision.

That decision is notified to the taxpayer in Spain, so that they can express their acceptance of or disagreement with the content of the decision and withdraw from any pending appeals.

Alternatively, the agreement between the competent authorities may conclude that there is no double taxation or taxation not in accordance with the Tax Treaty, or that the double taxation or taxation not in accordance with the Tax Treaty is not going to be eliminated.

The mutual agreement procedure may be terminated in the latter manner when the convention in question does not contain an arbitration clause.

In such cases, the agreement will be notified to the taxpayer (Article 16.3 of the Regulation on Mutual Agreement Procedures), but it will not be necessary to request their acceptance or that they withdraw from any pending appeals. The agreement puts an end to the mutual agreement procedure, but any domestic appeals may continue their course.