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November 25, 2024 OECD's 2023 mutual agreement procedure statistics show continued strength in the US program
On November 15, 2024, the OECD released MAP statistics showing the US MAP program's open inventory of cases decreased modestly for transfer pricing cases, but increased for non-transfer pricing cases in 2023. The US MAP program closed 230 cases (that were started on or after January 1, 2016) and opened 247.1 The 2023 statistics were released at the OECD's sixth Tax Certainty Day.2 For the first time, the OECD also released APA statistics.3 During the event, the OECD announced the 2023 MAP and APA awards. The 2023 MAP statistics include information from 140 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework), including the United States. The 2023 data covers almost all MAP cases worldwide. Separate statistics are provided for transfer pricing cases and "other" cases (such as withholding, residency, permanent establishment and limitations on benefits) for 2023, including the following data points:
The 2023 MAP statistics also include the number of MAP cases that each jurisdiction has with each of its treaty partners. Moreover, a reporting jurisdiction's performance on key indicators can be compared with the other jurisdictions through an interactive tool. 2023 MAP statistics The MAP statistics distinguish between transfer pricing cases and "other" cases. A transfer pricing MAP case relates to either attribution of profits to a permanent establishment or determining profits between associated enterprises. Any MAP case that is not a transfer pricing MAP case is characterized as an "other" MAP case. In the MAP statistics reporting, cases received before January 1, 2016, are distinguished from cases received on or after that date. For the jurisdictions that joined the Inclusive Framework after December 31, 2016, the MAP statistics distinguish between cases received before January 1 of the year the jurisdiction joined the Inclusive Framework and cases received on or after that date. The interactive tool allows users to compare a specific jurisdiction's performance in 2023 for both types of cases. The comparison is based on seven key indicators:
Users may customize their search by filtering among the indicators and selecting groups of jurisdictions. The US MAP Program4 A comparison of some key points regarding the US MAP program are provided in comparison to 2022 statistics below. Table 1 Cases Closed: 2022—2023 Comparison
Table 2 Cases Opened: 2022—2023 Comparison
Table 3 MAP Inventory: 2022—2023 Comparison
The IRS took an average of 28.5 months to close transfer pricing cases opened after January 1, 2016, while other cases took an average of 25.3 months from beginning to end. Although the United States did not shrink the MAP inventory in 2023 like it did in 2022, the number of cases opened and closed shows that the US MAP program continues to be strong. The time it took to close a case in 2023 was about three months shorter for transfer pricing cases and three months longer for other cases than in 2022. Although there are slight variations between 2022 and 2023, they are generally consistent, which may demonstrate that taxpayers can reasonably anticipate the expected timeline when they file a US MAP case. MAP statistics for all countries
2023 MAP awards The OECD recognized the efforts of the following competent authorities:
Implications The 2023 statistics demonstrate that MAP remains an effective way to eliminate double taxation and taxation not in accordance with a treaty. That said, the processing times for MAP cases remain well above the 24-month completion goal. Having the global MAP caseload decrease for the first time could be attributed to numerous variables, but in any event, is a welcome result.
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