Improve The Study Of Mutual Negotiation Procedures In My Country's Tax Treaties

Mutual Agreement Procedure(MAP)refers to the standardized procedure that should be followed by the tax authorities of the contracting states of an international tax treaty when dealing with international tax disputes.It is the procedure by which the tax authorities of both parties communicate and negotiate directly to resolve international tax disputes.With the transformation of China from a net importer of capital to a net exporter of capital,the number and amount of international tax disputes China facing have increased,and the situation has changed.Therefore,it is urgent for China to perfect and improve the Mutual Agreement Procedure in order to better resolve international tax disputes.In addition to the introduction,the paper is divided into four parts.The first part is the analysis of the basic theory of MAP.The main content of this part is the basic concept,legal status,characteristics and functions of MAP.This paper believes that the MAP deals with the distribution of interests between the parties,and the goal of each party is to maximize their own tax benefits.Multinational taxpayers will only choose to apply the Mutual Agreement Procedure if the benefits they obtained through the MAP are greater than the costs they paid.Generally speaking,there are three ways to resolve international disputes: diplomatic,legal,and war.This paper believes that the MAP has the characteristics of both diplomatic and legal.It is a procedural and simplified diplomatic and legal.Compared with other dispute resolution methods,MAP has the characteristics of controllability,flexibility,certainty,and universality.Its main function is to ensure the implementation of international tax treaties,promote the economic development of a country,and safeguard the interests of multinational taxpayers.The second part is the current situation and problems of MAP in China.By analyzing the development and status quo of relevant domestic laws,relevant data published by OECD and specific case,this paper believes that the problems of China's MAP include the low dispute resolution rate,the long processing time,the low MAP application rate and the insufficient protection of taxpayers during MAP.The third part is about the international comparison and experience of the MAP.This section describes the MAP provisions of major international organizations and typical countries.Firstly,the development of the OECD's research on MAP,with emphasis on the advancement of BEPS Action 14.The MAP rules of the UN are basically consistent with OECD.The multilateral tax dispute resolution framework of The European Union is of great significance for China to explore the multilateral tax dispute resolution mechanism.In the United States,the preliminary consultation meeting,the simplified procedures for small amount cases,and the mechanism for supervising and restricting tax authorities in the MAP are worthy of our reference.Italy is worthy of our reference because of having a reasonable division of labor for different types of MAP and clear provisions on the relationship between MAP and domestic legal procedures.On the basis of the above analysis,the fourth part put forward suggestions to improve China's MAP,including improving the legal system of MAP,improving the efficiency of MAP,paying attention to protecting taxpayers' rights during MAP,improving taxpayers' understanding of MAP,and introducing backup dispute resolution mechanisms as soon as possible.