The crux of the negotiations is to assess the value considered appropriate between overseas taxes and taxes in Indonesia. Why ask for a card? The MAP is in fact one of the tax disputes. In addition to the appeal and appeal procedure to the tax court. The tax treatment of P3B partners by the tax authorities, which do not comply with the provisions of P3B, includes: Second, the POP is a (cleansed) solution to a « special » settlement of disputes outside the scope of national dispute resolution, such as. B objections or remedies. The MAP is considered to be unique because it is a consultation process and not a dispute. It is also pointed out in paragraph 8 of the commentary on Article 25 of the OECD model, which states that « in any event, the procedure of mutual agreement is clearly a particular procedure outside national law… The Arbitration Convention of the European Union (EU) establishes a procedure for settling transfer pricing disputes for EU member states. This procedure may apply in cases of double taxation between companies in different EU Member States. The mechanism in question is the mutual agreement procedure or the so-called mutual agreement procedure (MAP). What is map? In fact, the POP is one of the tax disputes.
In addition to the objection and appeal procedures before the tax court, the subjects can choose either the nature of the settlement or in common. In the case of submitting a joint transaction, for example. B After reviewing and issuing a tax notice in the form of a tax deductor (SKPKB), the taxpayer opposes the SKPKB and files a POP with the tax office. The MAP is the negotiation process of two tax authorities. The objection is certainly the dispute between the taxpayer and the tax administration through pseudo-courts. Or on appeal to the tax court. The tax authority of the P3B partners is a tax administration of a partner country or a tax administration competent in the partnership, empowered to implement the provisions of the P3B. Or tax authorities abroad. Finally, POPs applications must be filed within three years of the first notice that resulted in litigation. As a general rule, the first statement can be interpreted as a letter of taxation or as a disclosure of the results of the audit. In Indonesia, the latest POPs provisions are governed by Finance Minister Regulation 49/PMK.03/2019. National taxpayers can submit to the Director General of Taxes, as an Indonesian agent, a request to implement the MAP as an Indonesian agent in case of tax treatment by the partner P3B tax authority that does not comply with the provisions of P3B.