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Guide to mutual agreement procedures

e.3 Starting point of the time period after which arbitration is triggered

The point from which the time period referred to in the preceding paragraph is calculated varies depending on the instrument used as a basis for conducting the mutual agreement procedure:

  • If the procedure is conducted under Title II (Mutual agreement procedure provided for in the Tax Treaties), in accordance with Article 11.3 of the Regulation on Mutual Agreement Procedures, the starting point of the above period is the date on which the competent authority of a state receives all the documentation and information referred to in Article 11.3.b) from the competent authority that receives the request for initiation. The latter will request that the former informs it of the date of receipt of the documentation and that date will be notified to the taxpayer. 

  • If the procedure is conducted under Title III (Procedure regarding the application of the Arbitration Convention), the starting point of the two-year period for being able to access the arbitration stage is the later of the following two dates:

    1. Date of notification of the tax assessment or an equivalent measure.

    2. Date on which the competent authority receives the request for initiation accompanied by all the information and documentation referred to in Article 27 of the Regulation on Mutual Agreement Procedures.

    However, when an appeal is lodged with an administrative body or court, the calculation of the two-year period, or the interruption of that period, will be begin on the date on which, in the context of domestic appeals, the decision issued in the last instance becomes final (Article 7.1 of the Arbitration Convention).

  • If the procedure is conducted under Title IV (Dispute resolution mechanism referred to in the Directive), the two-year period will be calculated from the last notification of a decision of any of the Member States concerned to allow the initiation of the procedure (Article 41.1 of the Regulation on Mutual Agreement Procedures). If the taxpayer has appealed against the adjustment giving rise to the mutual agreement procedure, that period will be calculated from the date on which the appeal is suspended, if that is later than the above-mentioned date.