The Mutual Agreement Procedures (“MAP”) are often found in Double-Taxation Agreements (“DTAs”). MAPs are used as means for settling double-taxation disputes by non-contentious means.
Under Normative Ruling 1,669/2016, a MAP can either operate as a unilateral stage used by the Brazilian Federal Revenue Department (“RFB”) to assess and decide on the avoidance of double taxation or operate as a bilateral stage whereby the RFB engages with their foreign counterpart so that both reach a mutually-agreed solution over the controversy and set tax collection terms.
Both residents and non-residents affected by double-taxation can request the application of the MAP. The MAP may not be requested if the taxpayer has filed court proceedings.
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Last modified: November 25, 2017