New Guidance On Mutual Agreement Procedures

The Luxembourg tax authorities (LTA) have just published a new circular on tax treaty-based mutual agreement procedures (MAPs). MAPs are an interesting dispute resolution alternative to traditional court proceedings, notably from a confidentiality and timing perspective.

1. Defending the taxpayer's interests through a MAP is made easy

Anticipate trouble – A Luxembourg taxpayer may submit a MAP request to the LTA if he considers that the actions of Luxembourg and/or the State having concluded a tax treaty with Luxembourg result or will result for him in taxation not in accordance with the tax treaty. A MAP may be initiated irrespective of the remedies provided by the domestic law of those States.