The South African government on July 25 published a new guide on accessing the mutual agreement procedure (MAP), which is a process agreed to by South Africa and other nations in tax treaties that benefits taxpayers that conduct cross-border business.
The MAP is a process available to residents that have experienced double taxation due to a dispute regarding the taxation of a cross-border transaction or similar problems. Under the MAP, the competent authority of South Africa and the other nation endeavor to resolve the dispute.
The new South Africa guide addresses issues such as when MAP applies, when MAP may be denied, and how taxpayers should make a MAP request.
The OECD and G20 made the improvement of cross-border tax dispute resolution, including access to the MAP, a priority, including provisions designed to improve the process as “minium standards” in the OECD/G20 base erosion profit shifting (BEPS) agreements. South Africa is one of over 100 countries that has agreed to adopt these standards.
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