Reasons Why Mutual Agreement Procedure (MAP) is A Good Choice for Dispute Resolution

Reasons Why Mutual Agreement Procedure (MAP) is A Good Choice for Dispute Resolution
May 11, 2023
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As businesses expand across borders, international taxation disputes are becoming more common. These disputes often involve complex issues that require specialized expertise in international taxation, especially tax treaties. One method of resolving such disputes, other than a rather traditional and prolonged mechanism like objection and appeal, is the Mutual Agreement Procedure (MAP). This insight discusses briefly what MAP is, its legal basis, developments in Indonesia, and why it is a good choice for dispute resolution.

MAP is an effective substitute for resolving international tax issues, particularly those involving transfer pricing. The regulatory structure and procedure, particularly in Indonesia, have been enhanced to better promote mutually agreeable resolution and an optimal avoidance of double taxation. Even while there is still room for improvement, it is abundantly obvious from the advantages that using alternative dispute resolution methods is oftentimes preferable.
Mutual Agreement Procedure Dispute Resolution
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Reasons Why Mutual Agreement Procedure (MAP) is A Good Choice for Dispute Resolution
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  • Reasons Why Mutual Agreement Procedure (MAP) is A Good Choice for Dispute Resolution - MAP is an effective substitute for resolving international tax issues, particularly those involving transfer pricing. The regulatory structure and procedure, particularly in Indonesia, have been enhanced to better promote mutually agreeable resolution and an optimal avoidance of double taxation. Even while there is still room for improvement, it is abundantly obvious from the advantages that using alternative dispute resolution methods…
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