On 2 February 2026 the OECD published its Manual on Effective Mutual Agreement Procedures (2026 Edition) (the “MEMAP”). The MEMAP is a practical and aspirational ‘best practice’ guide for competent authorities and taxpayers on mutual agreement procedures (“MEMAP”) to resolve double taxation.
The MEMAP (2026 Edition) has been released nearly 20 years after the original MEMAP (2007 Edition). Reflecting on the evolution of MAP since the 2007 Edition, the MAP landscape has changed significantly in Ireland and internationally. OECD statistics show that the global MAP inventory has more than doubled in that period (from over 2,500 MAPs in 2007 to over 6,000 MAPs based on the latest 2024 statistics). Not only has the volume of MAP cases grown, the issues that are presented in MAP cases have become increasingly complex and frequently have a multi-lateral dimension. Given the growing demand for tax certainty, the MEMAP provides a timely roadmap for making MAP more efficient and user-friendly and it reflects the extensive consultation with businesses and competent authorities to address practical issues.
MEMAP Highlights
MEMAP legal status: The MEMAP intends to complement existing treaties and domestic procedures. While it does not prescribe legally binding rules that must be followed by competent authorities, it contains 59 ‘best practices’ that competent authorities are encouraged to adopt. It is hoped that the MEMAP will represent a stronger minimum standard for conducting a MAP which could be considered in future OECD peer review processes.
Dispute prevention: The MEMAP highlights practices that support dispute prevention and it encourages jurisdictions to take proactive measures to prevent disputes leading to MAP cases. In particular, it highlights the success of Advance Pricing Agreement programmes. It also encourages ‘good faith’ negotiations throughout tax audits and MAP cases by both competent authorities and taxpayers.
Focus on MAP efficiency: The MEMAP accepts that access to MAP is meaningless if cases take years to resolve. In practice, the length of time to conclude a MAP is a major constraint to taxpayers seeking double taxation relief. The MEMAP promotes a number of practices that should contribute to more effective and timely MAP resolution, including recommending that senior personnel are involved to accelerate slower MAP cases, the education of competent authority teams and the use of IT tools to monitor the timely progression of MAP cases. To support a common approach to the structure of MAP, the MEMAP provides practical templates for both competent authorities and taxpayers.
Spotlight on MAP arbitration: Many jurisdictions have adopted mandatory binding MAP arbitration provisions in their tax treaties (including Ireland in a number of its tax treaties). MAP arbitration is effectively a ‘backstop’ dispute resolution mechanism between competent authorities when they cannot reach agreement. Absent arbitration, cases resulting in double taxation can remain unresolved. In practice, the use of MAP arbitration has been limited with very few cases reaching the arbitration stage in the several years since its implementation. Despite its historically limited use and the resistance from some jurisdictions to adopt the arbitration mechanism, it is hoped that the emphasis of the MEMAP on encouraging effective arbitration may lead to more instances of MAP arbitration.
Key takeaways for Irish taxpayers
- Irish Revenue’s existing MAP guidance and practice closely aligns with the MEMAP’s purpose and aims. This is borne out in the continued success of the Irish Competent Authority in the OECD’s annual jurisdictional statistics and awards. The high MAP inventory in Ireland is a reflection of how it is increasingly being relied upon by Irish taxpayers as a viable tool to resolve double taxation.
- While the vast majority of MAP cases involving Ireland are typically resolved with full or partial elimination of double taxation, access to effective MAP arbitration as a path to resolution will be welcomed, particularly in complex and high value cases. Having a backstop of arbitration should mean that taxpayers can enter into MAP with confidence that MAP cases should reach resolution and not remain indefinitely in a deadlock if agreement cannot be reached.
- The adoption of the MEMAP’s best practices by Ireland’s treaty partners should increase the effectiveness of MAPs involving Irish taxpayers, for example coordination on tax treaty interpretation for consistency across cases, the timely exchange of position papers and the provision of assistance to less experienced and low capacity jurisdictions.
Matheson’s transfer pricing team has extensive experience working on both domestic and international tax disputes, MAPs and APAs with our clients. Matheson regularly works with tax and legal advisors across a range of jurisdictions coordinating MAPs, APAs and international tax dispute resolution. If you have any questions, please contact Mark O’Sullivan, Anna Crowley or your usual Matheson Tax contact.