EU: New protocol for double taxation disputes has been reached
The Finance Ministers of the European Union have now accepted the European Commission’s suggestion for a necessary dispute resolution system in order to find a solution for the double taxation issues for businesses and individuals within the EU. The EU’s Directive aims to resolve the issue of double taxation through a “mandatory and binding” dispute resolution mechanism.
A new Mutual Agreement Procedure (MAP) between member countries will be allowed to be issued by both individual and corporate taxpayers, with regards to what tax should be paid and where. The deadline for the Directive is 30th June 2019; by when the member states have to transpose the regulation into their national legislation. The implications to follow are that EU taxpayers will now have confidence and regularity on the settlement of their double taxation disputes. The new Directive brings a lot of beneficial improvements such as clear deadlines and opportunities for participation in domestic courts.
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