Guidance for Taxpayers on
the Mutual Agreement Procedure(Q&A)
June, 2022
Office of the Mutual Agreement Procedure
National Tax Agency, Japan

This guidance is to complement the contents of the Commissioner’s Directive on the
Mutual Agreement Procedure (Administrative Guidelines)*1. This provides clear MAP
guidance to taxpayers required by the recommendation of the BEPS Action14 Final
Report*2 published in October, 2015.
For further information about the Mutual Agreement Procedure, please refer to theCommissioner’s Directive on the Mutual Agreement Procedure (Administrative
Guidelines).

*1 Amended on February 14, 2022.
*2 The BEPS Action14 Final Report: Element 2.1

Countries should publish rules, guidelines and procedures to access and use the
MAP and take appropriate measures to make such information available totaxpayers. Countries should ensure that their MAP guidance is clear and easily
accessible to the public.

Table of Contents
1. The Outline of the Mutual Agreement Procedure (MAP)
Q1－1

What is MAP?

Q1－2

What is the purpose of MAP?

Q1－3

Which provisions of a tax treaty allow MAP?

Q1－4

Please provide information regarding the number of MAP cases.

Q1－5

Which countries can Japan’s competent authority negotiate MAP cases
with?

Q1－6

Please give details about the circumstances surrounding MAP around theworld.

Q1－7

How long does it take to resolve a MAP case after its request is made?

Q1－8

What items should a taxpayer pay attention to for making a MAP request?

2. MAP
Q2－1

Who is eligible to request MAP assistance?

Q2－2

How can a taxpayer request MAP assistance?

Q2－3

Can a taxpayer consult with the NTA before requesting MAP assistance?

Q2－4

Is there any deadline for a pre-filing consultation?

Q2－5

What kind of documents should be prepared for a pre-filing consultation?

Q2－6

Please provide the application form for requesting MAP assistance.

Q2－7

What kind of materials should be attached to the application for MAP?

Q2－8

Does a taxpayer need to pay fees for a MAP request or pre-filingconsultation?

Q2－9

Is there any deadline for a MAP request?

Q2－10

Please provide examples of a case which are eligible to request MAP
assistance.

Q2－11

With respect to the taxation not in accordance with the provisions of theapplicable tax treaty, a taxpayer is trying to file an administrative appeal
regarding such taxation in accordance with the domestic law of the country
in which such taxation was made. Is it possible to make MAP assistancerequest in addition to this domestic appeal?

Q2－12

After filing an application for a MAP request, I have found somedeficiencies in the application. How can I correct them?

Q2－13

What procedure should be taken when a taxpayer would like to make a
MAP request regarding an APA?

2

Q2－14

Are there any cases where a MAP consultation will not be initiated even if
a MAP request has been made?

Q2－15

Our company has already made a MAP request as a member of aconsolidated corporation group. What procedure should we follow
regarding the taxable year commencing on or after April 1st, 2022?

Q2－16

What kind of cooperation is required for the applicant in the course of
MAP?

Q2－17

In case where both competent authorities reach an agreement to resolve acase, how can the applicant be informed of it by the MAP office?

Q2－18

What kind of procedure is required for the applicant after receiving the“Notification That a Mutual Agreement Has been Reached” from the MAP
Office?

Q2－19

Are there any MAP cases which will not be reached an agreement afternegotiation between competent authorities?

Q2－20

In case it is not necessary to continue MAP anymore, what kind ofprocedure should a taxpayer follow to withdraw it?

3. Arbitration
Q3－1

What is “Arbitration” provided for in a tax treaty?

Q3－2

Who is eligible to make a request for arbitration?

Q3－3

What are the procedures for making a request for arbitration?

Q3－4

Does a taxpayer need to pay fees for an arbitration request?

Q3－5

What items should a taxpayer pay attention to for making a request forarbitration?

4. Grace of Tax Payment Related to Transfer Pricing Taxation
Q4－1

What is the grace of tax payment related to transfer pricing taxation?

Q4－2

Who can apply for a grace of tax payment?

Q4－3

What are the procedures for a grace of tax payment?

Q4－4

What kind of materials are required for the application for the grace of tax
payment?

Q4－5

What kind of security should a taxpayer deposit along with an application
for a grace of tax payment?

Q4－6

What kind of information will be provided by the MAP Office after filingthe applications for the grace of tax payment?

Q4－7

What items should a taxpayer pay attention to during the period of the3grace of tax payment?
Q4－8

Our company has been granted grace of tax payment on issues dealt within two or more MAPs. Recently, we received the notification from the MAP
Office saying that the both competent authorities reached an agreement onsome issues but not all issues dealt with in such MAPs. In this case, howwill the grace of tax payment granted be treated?

Q4－9

Are there any possibilities to cancel the grace of tax payment?

Q4－10

With regard to local taxes, are there any systems which correspond to thegrace of tax payment mentioned above (Q4-1 through Q4-9)?

5. The MAP Provided for in the private-sector tax Agreement between theInterchange Association (Japan) and the Association of East Asian Relations(Taiwan) FAQ
Q5－1

Please provide information about the MAP described in the “Agreement
between the Interchange Association and the Association of East Asian
Relations for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income”.

41. The Outline of the Mutual Agreement Procedure (MAP)
Q1－1 What is a MAP?
○ MAP is a procedure between the competent authorities of contracting states (in thecase of Japan, the Office of Mutual Agreement Procedures (the MAP Office))
pursuant to the provisions of the tax treaties. The purpose of this procedure is mainly
resolving disputes on cases relating to:① Taxation not in accordance with the provisions of tax treaties resulting from theactions of one or both of the contracting states【Taxation Case】;② Advance pricing arrangement (APA) to determine an appropriate set of criteria(e.g. method, comparable and appropriate thereto) for determination of the arm’s length price for controlled transactions【APA Case】.
(A basic MAP process flowchart【Taxation Case】)

Pre-filing consultation↓
A MAP request from a taxpayer↓
MAP consultation between Japan and treaty partner↓
Taxpayer’s acceptance of contents of draft agreement↓
Agreement reached between Japan and treaty partner↓
Implementation of an adjustment based on the agreement○ For further information, please see the Commissioner’s Directive on the Mutual
Agreement Procedure (Administrative Guidelines).
( A basic MAP process flowchart【APA Case】)

Pre-filing consultation↓
A MAP request and APA request from a taxpayer↓
Review of APA request by the Regional Taxation Bureau (RTB)↓
MAP consultation between Japan and treaty partner↓
Taxpayer’s acceptance of contents of draft agreement↓
Agreement reached between Japan and treaty partner↓
RTB’s notification to taxpayer of APA confirmation based on the agreement

5○ For further information, please see the Commissioner’s Directive on the Operationof Transfer Pricing (Administrative Guidelines).
Q1－2 What is the purpose of MAP?
○ One of the purposes of a tax treaty is to eliminate double taxation. However, even if
a treaty is concluded, unintended international double taxation may occur by theactions of one or both of the contracting states that result in taxation not inaccordance with provisions of an applicable tax treaty. MAP pursuant to the tax
treaty is mainly aiming at eliminating such double taxation.
Q1－3 Which provisions of a tax treaty allow MAP?
○ Generally, a tax treaty contains provisions related to MAP (MAP provisions), whichallows the competent authorities to implement a MAP process, e.g. in the case of tax
treaty between Japan and United States signed in 2003, the MAP provisions aredescribed in Article 25 of the treaty.
(Note) MAP provisions described in Japan’s tax treaties are generally following theprovisions of the Model Tax Convention developed by the Organization for
Economic Co-operation and Development (OECD). The OECD’s Model Tax
Convention includes the MAP provisions in Article 25 as follows:
Article 25 of the OECD’s Model Tax Convention(MUTUAL AGREEMENT PROCEDURE)

1.

Where a person considers that the actions of one or both of the Contracting
States result or will result for him in taxation not in accordance with theprovisions of this Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the competent authority ofeither Contracting State. The case must be presented within three years fromthe first notification of the action resulting in taxation not in accordance withthe provisions of the Convention.

2.

The competent authority shall endeavour, if the objection appears to it to bejustified and if it is not itself able to arrive at a satisfactory solution, to resolve
the case by mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation which is not inaccordance with the Convention. Any agreement reached shall be implemented
notwithstanding any time limits in the domestic law of the Contracting States.

6

3.

The competent authorities of the Contracting States shall endeavour to resolveby mutual agreement any difficulties or doubts arising as to the interpretation
or application of the Convention. They may also consult together for theelimination of double taxation in cases not provided for in the Convention.

4.

The competent authorities of the Contracting States may communicate witheach other directly, including through a joint commission consisting ofthemselves or their representatives, for the purpose of reaching an agreementin the sense of the preceding paragraphs.

5.

Where,
a) under paragraph 1, a person has presented a case to the competentauthority of a Contracting State on the basis that the actions of one orboth of the Contracting States have resulted for that person in taxation
not in accordance with the provisions of this Convention, andb) the competent authorities are unable to reach an agreement to resolvethat case pursuant to paragraph 2 within two years from the date when
all the information required by the competent authorities in order toaddress the case has been provided to both competent authorities,
any unresolved issues arising from the case shall be submitted to arbitration if
the person so requests in writing. These unresolved issues shall not, however, be
submitted to arbitration if a decision on these issues has already been rendered
by a court or administrative tribunal of either State. Unless a person directly
affected by the case does not accept the mutual agreement that implements thearbitration decision, that decision shall be binding on both Contracting Statesand shall be implemented notwithstanding any time limits in the domestic lawsof these States. The competent authorities of the Contracting States shall by
mutual agreement settle the mode of application of this paragraph.

Q1－4 Please provide information regarding the number of MAP cases.
○ The number of MAP cases initiated in Japan, which are requested in Japan orrequested from the competent authority of a treaty partner, has an upward trend.
○ For more details, please see “MAP Report”.
Q1－5 Which countries can Japan’s competent authority negotiate MAP cases with?
○ Japan has concluded more than 70 treaties including MAP provisions.
○ For further information, please see “Japan’s Tax Conventions Including MAP
Provisions (as of June 30, 2021)”.

7

Q1－6 Please give details about the circumstances surrounding MAP around theworld.
○ With respect to the number of MAP cases, there is a clear upward trend around theworld over the past years. It is important to collaborate not only at a bilateral levelbut also at a multilateral level in order to resolve those cases effectively andefficiently.
○ In the Base Erosion and Profit Shifting (BEPS) project launched by the OECD in
2012, the measures are developed to strengthen the effectiveness of MAP
mechanisms resolving a dispute relating to a tax treaty, in order to eliminate
uncertainty of unintended double taxation and ensure predictabilities. The BEPS
Action 14 final report, published in October 2015, reflects a commitment by countries
to implement a minimum standard on dispute resolution, consisting of specificmeasures to remove obstacles to an effective mutual agreement procedure.
○ The implementation of the minimum standard by countries is assessed and reviewed
through a peer monitoring process in order to ensure that the commitments
contained in the minimum standard are effectively satisfied. This peer monitoringprocess, launched in December 2016, has been conducted by all jurisdictions thatcommit to the minimum standard under the Forum on Tax Administration MAP
Forum (the FTA MAP Forum).
(Note) The BEPS Action14 final report

1.3Countries should commit to a timely resolution of MAP cases: Countries
commit to seek to resolve MAP cases within an average timeframe of 24months. Countries’ progress toward meeting that target will be periodicallyreviewed on the basis of the statistics prepared in accordance with the agreed
reporting framework referred to in element 1.5.

1.6Countries should commit to have their compliance with the minimum standard
reviewed by their peers in the context of the FTA MAP Forum.

2.1

Countries should publish rules, guidelines and procedures to access and use
the MAP and take appropriate measures to make such information available
to taxpayers. Countries should ensure that their MAP guidance is clear andeasily accessible to the public.

* For further information, please see “Action14 - 2015 Final Report”. (OECD website)8

Q1－7 How long does it take to resolve a MAP case after its request is made?
○ In general, the duration of the MAP varies depending on the complexity of its case,the state of submission of documents by an applicant and the tax administrative
system of a treaty partner. According to the MAP statistics of Japan (MAP Report),
the average processing time on a MAP request resolved in the past years takes
approximately 2 years.
○ For more details on our accomplishments to date, please see “MAP Report”.
○ The BEPS Action14 final report (See Q1－6) recommends that countries commit toseek to resolve the MAP cases related to Taxation Cases within an average timeframeof 24 months. The National Tax Agency, Japan (NTA) also seeks to resolve the MAP
cases within the timeframe mentioned above.
(Note) The BEPS Action14 final report: Element 1.3

1.3Countries should commit to a timely resolution of MAP cases: Countries
commit to seek to resolve MAP cases within an average timeframe of 24months. Countries’ progress toward meeting that target will be periodicallyreviewed on the basis of the statistics prepared in accordance with the agreed
reporting framework referred to in element 1.5.

Q1－8 What items should a taxpayer pay attention to for making a MAP request?
1) Making good use of a pre-filing consultation.
○ Whether a MAP case can be resolved in an effective and efficient manner heavily
relies on various elements, such as the particularity or complexity of the case, tax
administrative systems of the treaty partner, its experiences on the MAP issues,
its relevant domestic laws or administrative practice, or its domestic remedies.
Those elements must be taken into account in conducting a MAP consultation sothat the NTA highly recommends that a taxpayer hold a pre-filing consultation
before filing a MAP request. (See Q2－3 to Q2－5)
2) Communicating and providing documents with the NTA on a timely basis.
○ Please contact with the NTA officer in charge in a timely manner in order toperform a MAP consultation effectively and efficiently.
○ The MAP Office may request the taxpayer who made the MAP request to submit
documents necessary for determining whether the MAP request is justified, orfor proceeding a MAP consultation. The RTB may also request the taxpayer tosubmit documents necessary for reviewing the APA request. In such a case,please provide those requested documents in a timely manner.

9

○ Such documents necessary for resolving MAP cases may also be requested by the
tax authority of a treaty partner through its foreign affiliated corporations.
Please share those submitted documents with the NTA officer without delay.
○ It should be noted that the failure of providing or updating significant
information regarding a MAP case in a timely manner may cause a serious
impediment for resolving the MAP case.
3) Keeping consistency in contents of the documents to both tax authorities.
○ For some cases like transfer pricing taxation and APA, an applicant makes a
MAP request with the required documents to Japan’s tax authority, while its
foreign affiliated corporation also submits a MAP request with the required
documents to its treaty partner’s tax authority. In such cases, any serious
inconsistency in explanation (including description in the MAP request and therequired documents) or the significant timing gap of such explanation to bothcompetent authorities may cause great confusion in the MAP consultation andinterrupt its efficient resolution.
○ Especially, if the application of a MAP request filed to a treaty partner issignificantly different from the one filed to the NTA, such inconsistency may
cause a serious impediment for resolving the MAP case.

102. MAP
Q2－1 Who is eligible to request for MAP assistance?
○ The following person can request MAP assistance pursuant to an applicable tax treaty,
only if such person has been, or will be subject to taxation not in accordance with theprovisions of a tax treaty:① Resident,② Domestic corporation,③ Non-resident* and,④ Foreign corporation*.
* Non-resident and foreign corporation can make a MAP request only if such arequest is allowed in an applicable tax treaty.
○ A MAP request regarding an APA can be made by a taxpayer who made, or will makean APA request in accordance with the Commissioner’s Directive on the Operation ofTransfer Pricing (Administrative Guidelines).
(Note) Please see Current Status of Negotiations on Tax Conventions (Text and Outline)
provided by the Ministry of Finance.
Q2－2 How can a taxpayer request MAP assistance?
○ A request for MAP assistance (a MAP request) shall be made by filing an application“The Application for the Mutual Agreement Procedure” (Form1) (See Q2－6) with
attachments (See Q2－7) to the MAP Office.
○ If the covered transactions of a MAP request is related to a consolidated subsidiary(except the one regarding an APA), its consolidated parent corporation shall file anapplication with attachments to the MAP Office.
(For submission)
Office of Mutual Agreement Procedures, National Tax Agency, JAPAN
Office Address: 3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8978 JAPANContact details: Tel: +81-3-3593-6388○ In the case of requests for MAP assistance regarding an APA, an APA request shallbe made to the relevant RTB in accordance with the Commissioner’s Directive on the
Operation of Transfer Pricing (Administrative Guidelines), in addition to the MAP
request to the MAP Office. (See Q2－13)○ A pre-filing consultation for a MAP request is highly recommended before filing the
MAP request. (See Q2－3)

11

（The Pre-filing consultation）
Q2－3 Can a taxpayer consult with the NTA before requesting MAP assistance?
○ The MAP Office accepts a request for a pre-filing consultation with taxpayers who
consider requesting MAP assistance. Thus, the NTA highly recommends that
taxpayers make good use of such consultation before filing a MAP request. (See Q1－ 8) An anonymous consultation through an agent of the individual or the
corporation is also available.
○ Taxpayers are required to make an appointment in advance to hold a pre-filingconsultation with the MAP Office. (For contact information, see Q2－2.)○ Such appointment for the pre-filing consultation for APA can also be made throughthe relevant divisions in RTBs.
Q2－4 Is there any deadline for a pre-filing consultation?
○ There is no deadline for a pre-filing consultation. However, the NTA recommends you
have a pre-filing consultation as early as possible when you consider that actions of
one or both of the contracting states result or will result in taxation not in accordancewith the provisions of tax treaties, in order to proceed the MAP in an effective andefficient manner.
○ It should be noted that some tax treaties have time limits for filing a MAP request.
(See Q2－9)○ It should be noted that there is a deadline for filing an APA request in Japan.
Q2－5 What kind of documents should be prepared for a pre-filing consultation?
○ Please prepare documents including a summary of the taxation related to the MAP
request, facts and circumstances related to the taxation and the reason for the MAP
request, in order to carry out the pre-filing consultation smoothly.
○ As for an APA case, you need to prepare the outline of the covered transactions andthe organization which conducts such transactions, documents explaining the capital
relationships with its foreign affiliated corporation and other documents relevant to
the request.
○ If the documents are in foreign languages, please attach Japanese translations of
them.

12

(The procedure of MAP request)
Q2－6 Please provide the application form for requesting MAP assistance.
○ Please see “Application for the Mutual Agreement Procedure” (Form1).
Q2－7 What kind of materials should be attached to the application for MAP?
○ Please attach the following materials to the application:① If the request is related to taxation in Japan or in a treaty partner:（Cases where the taxation has occurred）
 A copy of the letter of the assessment that proves such taxation.
 A written description of the details of the facts related to the taxation and an
outline of the position of the applicant or its foreign affiliated corporation to suchtaxation.
（Case where the taxation has not yet occurred）
 A written description of the details of the facts which will result in taxation andan outline of the position of the applicant or its foreign affiliated corporation tosuch taxation.
② If the request is related to taxation in Japan or in a treaty partner, and theapplicant or its foreign affiliated corporation has presented the case to an
administrative tribunal or a court: Documents described in ①
 Documents indicating that an administrative appeal or a lawsuit regarding thetaxation has been filed, and an outline of the position of the applicant or its foreign
affiliated corporation to such taxation.
 A copy of the complaint for an administrative appeal or a lawsuit.
③ If the request is related to transfer pricing taxation in Japan or in a treaty
partner: Documents described in ①
 Documents describing the direct or indirect capital relationship or the de facto
control relationship between the parties involved in the transactions that are thesubject of the MAP request.
④ If the request is related to Article 13 of the Ministerial Ordinance (Income Tax
Convention), and if an applicable tax treaty or intergovernmental agreements
appended to the tax treaty provide items that should be considered in the MAP:
 Documents described in ①

13 Documents relating to those items.
⑤ If the applicant or its foreign affiliated corporation has made a MAP request to
the competent authority of the treaty partner:
 Documents described in ①
 A copy of documents explaining that fact.
⑥ Other documents that are relevant to the MAP○ If a MAP request is related to an APA, it is not necessary for a taxpayer to submit
the required attachments to the MAP application, as the APA request, together with
its attachments, submitted to the relevant RTB, will be circulated to the MAP Office.
○ If the attachments are in foreign languages, please attach Japanese translations ofthem.
○ The MAP Office may request additional materials not listed above but necessary for
determining whether the MAP request is justified or for proceeding a MAP
consultation. In that case, please submit those materials in a timely manner.
Q2－8 Does a taxpayer need to pay fees for a MAP request or pre-filing consultation?
○ No fee is charged in Japan for a MAP request nor pre-filing consultation.
Q2－9 Is there any deadline for a MAP request?
○ In Article 25z of the OECD’s Model Tax Convention, there are provisions that
stipulates a MAP request must be made within three years from the first notificationof the action resulting in taxation not in accordance with the provisions of theConvention.
○ Many tax treaties which Japan has concluded contain the similar provision. However,please check the provisions of an applicable tax treaty, as the provision may differ
treaty by treaty.
(Note) Article 25 of the OECD’s Model Tax Convention(MUTUAL AGREEMENT PROCEDURE)

1.

Where a person considers that the actions of one or both of the Contracting
States result or will result for him in taxation not in accordance with theprovisions of this Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the competent authority ofeither Contracting State. The case must be presented within three years fromthe first notification of the action resulting in taxation not in accordance withthe provisions of the Convention.

14

Q2 － 10 Please provide examples of a case which are eligible to request MAP
assistance.
○ For example, MAP requests can be made in the following cases:① Cases where a domestic corporation requests MAP assistance on the grounds
that the corporation has been, or will be subject to transfer pricing taxation in
Japan or in a treaty partner regarding transactions between the domestic
corporation and its foreign affiliated corporation.
② Cases where a domestic corporation requests MAP assistance with regard to thetransactions between the domestic corporation and its foreign affiliatedcorporation, with a request for an APA in accordance with the Commissioner’s
Directive on the Operation of Transfer Pricing (Administrative Guidelines).
③ Cases where a resident or a domestic corporation requests MAP assistance on
the grounds that the resident or the domestic corporation has been, or will be
subject to taxation not in accordance with the provisions of the applicable tax
treaty regarding the presence of its permanent establishment in a treaty partner,
or regarding the amount of profit attributable to the permanent establishment.
④ Cases where a resident or a domestic corporation requests MAP assistance withregard to its APA request made in accordance with the Commissioner’s Directiveon the Operation of Transfer Pricing (Administrative Guidelines), etc. for Income
Attributable to Permanent Establishments.
⑤ Cases where a resident or a domestic corporation requests MAP assistance on
the grounds that the resident or the domestic corporation has been, or will be
subject to taxation not in accordance with the provisions of the applicable tax
treaty regarding income tax withheld in the treaty partner.
⑥ Cases where a non-resident who has Japanese nationality requests MAP
assistance on the grounds that the person has been, or will be subject to moreburdensome taxation or requirements in a treaty partner than the taxation or
requirements applied to the nationals of the treaty partner.
⑦ Cases where a Japanese resident who is also regarded as a resident of a treaty
partner under laws of the treaty partner requests MAP assistance in order todetermine the nation of which the individual is to be deemed to be a resident
under the applicable tax treaty.
○ With regard to ① or ③ above, a taxpayer may request

MAP assistance in thecases of bona fide taxpayer-initiated foreign adjustments*1 (See Q1－6) or multiple
MAP cases*2.
*1

Cases regarding taxpayer-initiated adjustments permitted under the domestic

15

laws of a treaty partner which allow a taxpayer under appropriate circumstances
to amend a previously-filed tax return to adjust (i) the price for a transaction
between associated enterprises or (ii) the profits attributable to a permanentestablishment.
*2

Cases related to taxation (e.g. transfer pricing) involving transactions with two
or more treaty partners.

○ A taxpayer may request MAP assistance in cases in which there is a disagreement
between the taxpayer and the tax authorities making adjustment as to whether theconditions for the application of a treaty anti-abuse provision have been met orwhether the application of a domestic anti-abuse provision is in conflict with theprovision of a treaty.
Q2－11 With respect to the taxation not in accordance with the provisions of theapplicable tax treaty, a taxpayer is trying to file an administrative appeal
regarding such taxation in accordance with the domestic law of the country
in which such taxation was made. Is it possible to make MAP assistancerequest in addition to this domestic appeal?
○ Taxpayers may request MAP assistance even if they have presented their cases to an
administrative tribunal or court. In this case, in addition to the other necessary
attachments, please submit the documents indicating that an administrative appeal
or a lawsuit has been filed, and an outline of the position of the applicant or its foreign
affiliated corporation to the case, together with a copy of the complaint for theadministrative appeal or the lawsuit.
○ Where a decision on these issues has already been rendered by an administrative
tribunal or court in Japan, the MAP office will conduct a MAP consultation byfollowing such decision.
Q2－12 After filing an application for a MAP request, I have found some deficiencies
in the application. How can they be corrected?
○ Please contact the MAP Office without delay if the applicant found an error or would
like to make any significant changes in the application, its attachments or any otherdocuments.
○ If the MAP Office found deficiencies in the application filed, the MAP Office will
instruct the applicant to correct them. In case the applicant does not follow such
instruction, the MAP Office will notify the treaty partner’s competent authority of
not proposing the initiation of the MAP consultation, and then will inform the16

applicant of that notification.
Q2－13 What procedure should be taken when a taxpayer would like to make a MAP
request regarding an APA?
○ The procedure of making a MAP request regarding an APA is the same as the one ofthe other MAP cases. However, you must make the APA request, before or together
with making the MAP request.
○ The MAP Office will notify the competent authority of the treaty partner that
initiation of the MAP consultation will not be proposed, or propose termination of the
MAP consultation to it, and then will inform the applicant of that notification in thecase where the taxpayer does not file the application for APA or withdraws suchapplication, as it is not justifiable to start or continue the MAP consultation in suchcase.
(The procedure after a MAP request)
Q2－14 Are there any cases where a MAP consultation will not be initiated even if a
MAP request has been made?
○ After an objection made by a taxpayer is justified (if a MAP request is related to an
APA, after being informed of the completion of the APA review by the RTB concerned),
the MAP Office will propose the initiation of the MAP consultation to the competentauthority of a treaty partner. However, such proposal will not be made in thefollowing cases:① Cases where an applicant does not correct deficiencies of its Application for the
MAP or its attachments, when it was requested by the MAP Office.
② Cases where an applicant does not make an APA request in accordance with theprovisions of the Commissioner’s Directive on the Operation of Transfer Pricing(Administrative Guidelines), when the MAP request is related to an APA(including the case where the applicant has withdrawn the request).
③ Cases where an applicant does not submit the documents necessary for
determining whether the MAP request is justified, when it was requested by the
MAP Office.
④ Cases where the objection made by an applicant in a MAP request is not justified(in the case of the MAP request related to an APA, the case where the request isregarded as inappropriate case for the MAP under the Commissioner’s Directiveon the Operation of Transfer Pricing (Administrative Guidelines).

17

Q2－15 Our company has already made a MAP request as a member of a consolidated
corporation group. What procedure should we follow regarding the taxable
year commencing on or after April 1st, 2022?
○ In that case, the MAP applies to each corporation. On the other hand, regarding a
MAP request covering the consolidated taxable year prescribed in Article 15-2
[Meaning of Consolidated Taxable Year] of the Corporation Tax Act prior to its
revision on April 1st, 2022, the MAP continues to apply to the consolidated parent
corporation that made the request.
○ With respect to a request for a MAP regarding an APA that has already been madeby a consolidated parent corporation (limited to the case where the subject of therequest includes both the consolidated taxable years and the taxable years
commencing on or after April 1st, 2022), the MAP will be applied to a corporation thathas complied with a certain requirement.
○ For further information, please ask the MAP Office.
Q2－16 What kind of cooperation is required for the applicant in the course of MAP?
○ The MAP Office may request additional materials necessary for determining whether
the MAP request is justified or for proceeding a MAP consultation, or for an APA
review. In those cases, please submit the requested materials in a timely manner.
(See Q1－8)○ The documents necessary for resolving MAP cases may be requested by the tax
administration of the treaty partner through foreign affiliated corporation. In thatcase, please share those submitted materials with the NTA without delay. At thesame time, consistent explanations are required to be provided to both competentauthorities when submitting those materials. (See Q1－8)
Q2－17 In case where both competent authorities reach an agreement to resolve acase, how can the applicant be informed of it by the MAP office?
○ Before reaching an agreement to resolve a case, the MAP Office will send the draftof the agreement in writing to the applicant of the case, and ask whether theapplicant accepts the proposal or not. After the applicant’s acceptance is confirmed,
the MAP Office will reach the agreement with the competent authority of the treaty
partner.
○ After a mutual agreement has been reached on a case, the MAP Office will notify thedate and contents of the agreement to the applicant of the case by sending“Notification That a Mutual Agreement Has Been Reached”.

18

Q2－18 What kind of procedure is required for the applicant after receiving the“Notification That a Mutual Agreement Has been Reached” from the MAP
Office?
○ After a mutual agreement is reached on a case, the mutual agreement will be
implemented by the following procedures according to the case:(Taxation case other than withholding taxation case)○ Where a mutual agreement reached on a MAP case regarding taxation other thanwithholding taxation initiated by Japan has resulted in reducing the amount ofincome and/or tax of the applicant’s filed tax return, the Japanese tax authority will
make a correction to the applicant’s filed tax return pursuant to Article 26 of the Act
on General Rules for National Taxes. Accordingly, the applicant does not need tomake a request for reassessment of its filed tax return.
○ In cases where a mutual agreement reached on a case regarding taxation other thanwithholding taxation initiated by a treaty partner has resulted in reducing theamount of income and/or tax of the applicant’s filed tax return, the applicant has tomake a request for reassessment of its filed tax return to comply with the mutual
agreement within 2 months from the date on which the mutual agreement is reached,pursuant to paragraphs 1 or 2 of Article 7 of the Act on Special Provisions regarding
the Application of Tax Treaties and paragraphs 1 or 2 of Article 23 of the Act onGeneral Rules for National Taxes.
(Withholding taxation case)○ In cases where a mutual agreement reached on a case has resulted in refunding all
or a part of the amount of income tax and special income tax for reconstruction
withheld by a withholding agent in Japan and where such an amount was voluntarily
withheld by the withholding agent, that withholding agent will be requested to file a“Request for a Refund of Overpaid Withholding Income Taxes and Special Income
Tax for Reconstruction” to the Japanese tax authority without delay.
○ In cases where a mutual agreement reached on a case has resulted in refunding all
or a part of the amount of income tax and special income tax for reconstruction
withheld by a withholding agent in Japan on receipt of a notification of thewithholding income tax and special income tax for reconstruction, the Japanese tax
authority will refund such an amount to the withholding agent. Accordingly, thatwithholding agent does not need to file a Request for a Refund of Overpaid
Withholding Income Taxes and Special Income Tax for Reconstruction.

19

○ In cases where a mutual agreement reached on a case has resulted in refunding theamount of income tax withheld by a withholding agent in a treaty partner from theincome which a resident or a domestic corporation in Japan receives from a resident
or corporation in the treaty partner, the refund of such an amount will be made inaccordance with the relevant procedures in the treaty partner.
(APA case)○ In cases where a mutual agreement has been reached on an APA case, an applicant
has to revise its filed APA request to comply with the mutual agreement, if necessary.
Based on the revised APA request, the APA confirmation will be notified in writing
to the applicant by the District Director of the Tax Office relevant to the place of tax
payment of the applicant.
○ In cases where the amount of income of the applicant’s filed tax return for an APA
year has proved to be understated for the reason that the price for the covered
transactions of the APA request has not been in accordance with the mutual
agreement, the applicant has to voluntarily file an amended tax return to correctsuch understatement without delay. An amended tax return which was filed
voluntarily before the Japanese tax authority points out such understatement, will
not be treated as the “tax return filed foreknowing that an assessment should bemade” as prescribed in paragraphs 1 and 5 of Article 65 of the Act on General Rules
for National Taxes. Moreover, in cases where an amended tax return is filed after theJapanese tax authority notifies the applicant of the initiation of an audit, such an
amended tax return will be treated as the “tax return filed before receiving a
notification regarding the initiation of an audit” as prescribed paragraph 5 of Article
65 of the Act on General Rules for National Taxes. Accordingly, any additional tax forunderstatement will not be imposed on such an amended tax return*.
* This treatment only applies to the additional tax with regard to having filed theamended tax return to comply with a mutual agreement on an APA case. Thus,
even in such a case, the applicant has to pay the increased amount of tax in theamended tax return, and an additional tax may be imposed on any amount of tax
in such an amended tax return other than the amount of tax to comply with themutual agreement on the APA case.
○ In cases where the amount of income of the applicant’s filed tax return for an APA
year has proved to be overstated for the reason that the price for the covered20

transactions of the APA request has not been in accordance with the mutual
agreement, the applicant has to make a request for reassessment of its filed tax
return to comply with the mutual agreement within 2 months from the date on which
the mutual agreement is reached pursuant to paragraphs 1 or 2 of Article 23 of the
Act on General Rules for National Taxes.
○ If a mutual agreement on a case results in changing an amount of income tax or
corporation tax to be paid, an amount of the local taxes to be paid will also change
accordingly. For the procedures to be taken regarding such a changed amount of local
taxes, please ask the local tax authority relevant to your place of tax payment.
Q2－19 Are there any MAP cases which will not be reached an agreement afternegotiation between competent authorities?
○ If the objection made by a taxpayer in a MAP request is justified, the competentauthorities of Japan and a treaty partner should endeavour to resolve the case bymutual agreement under the provisions of a tax treaty.
○ However, the MAP Office will propose termination of a MAP consultation to thecompetent authority of a treaty partner if there is no appropriate reason forcontinuing the MAP consultation; for instance, if it has found that the issue
regarding a MAP request is not the subject of the MAP provisions under anapplicable tax treaty after the MAP consultation has started.
○ In addition, the termination of a MAP consultation will be proposed to the competentauthority of a treaty partner in cases:① where an applicant does not cooperate in providing the documents necessary fora MAP consultation,② where an applicant does not accept the draft of an agreement proposed by the
MAP Office before both competent authorities reach an agreement to resolve acase,③ where significant inconsistency between the contents explained by an applicant
or its foreign affiliated corporation for each competent authority (including
description in a MAP request or required materials) causes a serious influence on
a MAP consultation, and④ where continuation of a MAP consultation will reach no appropriate solution.
○ If the competent authority of a treaty partner accepts the termination of a MAP
consultation proposed by the MAP Office, the MAP process will be terminated andthe MAP Office will notify that fact to the applicant by sending a “Notification Thata Mutual Agreement Procedure Has been Terminated”.

21

○ The MAP process will be terminated also in cases where the competent authority ofa treaty partner proposes the termination of a MAP consultation to the MAP Officeand the MAP Office accepts such a proposal.
Q2－20 In case it is not necessary to continue MAP anymore, what kind of procedure
should a taxpayer follow to withdraw it?
○ After filing a MAP request, an applicant can withdraw a MAP request any time
before receiving a “Notification That the Initiation of a Mutual Agreement Procedure
Consultation Will not be Proposed”, a “Notification That a Mutual Agreement Has
been Reached” or a “Notification That a Mutual Agreement Procedure Has been
Terminated.” In such case, please file “Notification of the Withdrawal of a Request
for a Mutual Agreement Procedure” to the MAP Office.
○ Please see “Notification of the Withdrawal of a Request for Mutual Agreement
Procedure”. (Only available in Japanese)

223. Arbitration
Q3－1 What is “Arbitration” provided for in a tax treaty?
○ Arbitration provided for in a tax treaty is a procedure in which, where bothcompetent authorities are unable to reach an agreement within a certain period fromthe start date of a MAP case regarding taxation not in accordance with the provisionsof an applicable tax treaty resulting from the actions of one or both of the contracting
states, any unresolved issues arising from the MAP case will be submitted for
resolution to the arbitration panel consisting of the third parties if the applicant so
requests. Some of the Japan’s tax treaties include provisions regarding arbitration(arbitration provisions).
○ The decision on the unresolved issues submitted to arbitration (arbitration decision)
shall be binding on both competent authorities and shall be implemented
notwithstanding any time limits in the domestic laws of both contracting states
unless the applicant does not accept the mutual agreement that implements that
arbitration decision.
○ For more details of arbitration provisions described in Japan’s tax treaties, pleasesee an applicable tax treaty (including the protocol attached to the treaty).
○ Tax treaties that include arbitration provisions provide that both competentauthorities shall settle the mode of application of the arbitration provisions by
mutual agreement in order to ensure that an arbitration decision will be
implemented basically within 2 years from a request for arbitration. For further
information about the mode of application of arbitration provisions, please see the“Implementing Arrangement Regarding the Arbitration Procedure” relating to an
applicable tax treaty.
(Note)
1.

The provisions of Japan’s tax treaties generally follow the provisions of theOECD’s Model Tax Convention including the following arbitration provisions:Paragraph 5 of Article 25 of the OECD’s Model Tax Convention

5. Where,a) under paragraph 1, a person has presented a case to the competentauthority of a Contracting State on the basis that the actions of one orboth of the Contracting States have resulted for that person in taxation
not in accordance with the provisions of this Convention, andb) the competent authorities are unable to reach an agreement to resolve

23that case pursuant to paragraph 2 within two years from the date when
all the information required by the competent authorities in order toaddress the case has been provided to both competent authorities,
any unresolved issues arising from the case shall be submitted to arbitration
if the person so requests in writing. These unresolved issues shall not,however, be submitted to arbitration if a decision on these issues has alreadybeen rendered by a court or administrative tribunal of either State. Unless aperson directly affected by the case does not accept the mutual agreementthat implements the arbitration decision, that decision shall be binding on
both Contracting States and shall be implemented notwithstanding any time
limits in the domestic laws of these States. The competent authorities of theContracting States shall by mutual agreement settle the mode of applicationof this paragraph.
2.

Current Status of Negotiations on Tax Conventions (Text and Outline) provided
by the Ministry of Finance.

3.

Implementing arrangements regarding arbitration procedure.

Q3－2 Who is eligible to make a request for arbitration?
○ The taxpayer who requested a MAP is eligible to make a request for arbitration if
the MAP is requested under a tax treaty including arbitration provisions and bothcompetent authorities are unable to reach an agreement to resolve the MAP casewithin a certain period*1 from the start date of the MAP case*2.
*1

This period depends on an applicable tax treaty.

*2

The MAP Office will confirm the start date of a MAP case with the competentauthority of its treaty partner and will inform the applicant of the confirmed startdate of the MAP case.

○ Please note that a request for arbitration can be made only if the MAP case is related
to taxation not in accordance with the applicable tax treaty resulting from one orboth of the contracting states.
Q3－3 What are the procedures for making a request for arbitration?
○ A request for arbitration shall be made by filing an “Application for the Arbitration
Procedure” to the MAP Office. (See Q2－2)○ Please see “Application for the Arbitration Procedure”. (Only available in Japanese)24

(Note)1.

The taxpayer who has made a request for arbitration can withdraw that request
by filing a “Notification of the Withdrawal of a Request for Arbitration
Procedure” to the MAP Office any time before receiving “a Notification That a
Mutual Agreement Has Been Reached”. Please see “Notification of theWithdrawal of a Request for Arbitration Procedure”. (Only available inJapanese)2.

If the taxpayer who has made a request for arbitration would like to withdraw
the MAP request as well as the request for arbitration procedure, it is sufficientthat the taxpayer files a “Notification of the Withdrawal of a Request for a
Mutual Agreement Procedure” to the MAP Office, and a “Notification of theWithdrawal of a Request for Arbitration Procedure” does not need to be filed.

Q3－4 Does a taxpayer need to pay fees for an arbitration request?
○ No fee is charged in Japan for an arbitration request.
Q3－5 What items should a taxpayer pay attention to for making a request forarbitration?
○ Please note that a taxpayer cannot make a request for arbitration if a decision on theunresolved issues regarding a MAP case has already been rendered by a court or an
administrative tribunal in Japan or in a treaty partner.

25

4. Grace of Tax Payment Related to Transfer Pricing Taxation
Q4－1 What is the grace of tax payment related to transfer pricing taxation?
○ Where a taxpayer has been subject to transfer pricing taxation, etc. in Japan and has
requested MAP assistance regarding such taxation, upon request from the individual
or corporation, a certain period of a grace of tax payment may be granted up to acertain amount of income tax or corporation tax and local corporation tax, andadditional tax to be paid as a result of such taxation.
(Note) A grace of tax payment also may be granted to an amount of special individual
tax for reconstruction or special corporation tax for reconstruction andadditional tax to be paid as a result of transfer pricing taxation, etc. in Japan.
○ The period of a grace of tax payment is a period from the day following the due date
for payment of income tax, etc. to be paid as a result of transfer pricing taxation, etc.
(if the day of the application for a grace of tax payment is later than such due date,the day of the application) to the date on which one month has elapsed after the dateof an adjustment made based on a mutual agreement between both competentauthorities. (if the competent authorities have not reached an agreement andterminated the MAP consultation, the date of the Commissioner’s notification of sucha fact.)○ For further information about the procedures regarding the grace of tax payment
related to transfer pricing taxation, etc., please see section 42 (Grace of Tax Payment)oftheCommissioner’s

Directiveonthe

MutualAgreement

Procedure(Administrative Guidelines).
○ The delinquent tax on the income tax, etc. to be paid as a result of transfer pricing
taxation, etc. is exempted during the period of a grace of tax payment. However, it
should be noted that such delinquent tax imposed during a period from the date ofan adjustment by the tax authority to the date of an application for a grace of
payment is not exempted.
Q4－2 Who can apply for a grace of tax payment?
○ An individual or a corporation can apply for a grace of tax payment in accordancewith the provisions concerned of the Act on Special Measures Concerning Taxation if
all of the following requirements are met:
① The individual or the corporation has been subject to transfer pricing taxation,etc. in Japan.

26

② The individual or the corporation has made a MAP request regarding thetaxation referred to in ① pursuant to the provisions of an applicable tax treaty.
③ The amount of income tax or corporation tax and local corporation tax regarding
the application for the grace of tax payment in the amount of income tax, etc. tobe paid as a result of taxation referred to in ① (income tax, etc. related to thegrace of tax payment) are covered in the MAP initiated between the NTA andthe treaty partner after receiving the MAP request referred to in ②.
④ At the time of filing the application, the individual or the corporation does nothave any delinquent national taxes other than the amount of tax referred to in③.
⑤ In principle, the individual or the corporation deposits a security equivalent tothe amount of the income tax, etc. relating to the grace of tax payment.
○ If you are going to apply for a grace of tax payment, please inform the MAP Office ofthat fact in the course of a pre-filing consultation.
○ Please check the applicable box (i.e. check “yes”) in the Application for the Mutual
Agreement Procedure to indicate that you will apply for a grace of tax payment. (See
Q2－6)
Q4－3 What are the procedures for a grace of tax payment?
○ An application for a grace of tax payment has to be made by filing two sets of the“Application for the Grace of Tax Payment” with the attachments (See Q4－4) to therelevant Tax Office. In addition to that, the applicant has to deposit a security. (See
Q4－5)
○ Please see “Application for the Grace of Tax Payment”.(Only available in Japanese)
Q4－4 What kind of materials are required for the application for the grace of tax
payment?
○ Please attach two sets of the following materials to the “Application for the Grace ofTax Payment”:① A document showing that a MAP request has been made to the competentauthority of Japan or a treaty partner on the grounds that an applicant has been
subject to transfer pricing taxation, etc. in Japan. (if a MAP request has been
made to the competent authority of the treaty partner, Japanese translation of
the application.)② A document showing that the taxes related to the grace of tax payment has
resulted from transfer pricing taxation, etc. in Japan and has been covered in the27

MAP initiated between the NTA and the treaty partner.
Q4－5 What kind of security should a taxpayer deposit along with an application fora grace of tax payment?
○ The security for a grace of tax payment shall be the kinds of security listed in each
item of Article 50 [Kinds of Security] of the Act on General Rules for National Taxes
as follows:① Government bonds and local government bonds,② Corporate bonds (including bonds issued by corporations established under
special acts) and other securities that the District Director of the relevant Tax
Office approves as reliable,③ Land,④ Buildings, living trees, and registered vessels, aircrafts, propeller planes,
automobiles and construction machines that have been insured,⑤ Railway foundations, factory foundations, mining foundations, streetcar
foundations, canal foundations, fishery foundations, port transportation
foundations, road transportation foundations and tourist foundations,⑥ A guarantee by a guarantor whom the relevant District Director of the Tax Office
approves as reliable,⑦ Money.
○ For further information, please see Section 2 of Chapter 4 of the Directive on the
Handling of the Grace of Tax Payment, etc. (Only available in Japanese)○ When an applicant deposits security, the applicant shall submit the documents
specified in Section 2 of Chapter 4 of the Directive on the Handling of the Grace ofTax Payment, etc. in addition to the “Security Deposit Form”. (Only available inJapanese)
Q4－6 What kind of information will be provided by the MAP office after filing theapplications for the grace of tax payment?
○ Whether the application filed meets all of the requirements (See Q4－2) for the graceof tax payment will be examined considering other relevant information including
attachments (See Q4－4) and the documents related to the deposited security. (SeeQ4－5) When granting a grace of tax payment, the relevant RTB will notify the
taxpayer of such fact, the amount under the grace period and other necessary mattes
by sending a “Notification That a Grace of Tax Payment Has Been Granted”.
○ If the relevant RTB does not grant a grace of tax payment, it will notify the taxpayer,28

if any, the guarantors and third party mortgagors or pledgers, of such fact by sendinga “Notification That a Grace of Tax Payment Has Not Been granted”.
Q4－7 What items should a taxpayer pay attention to during the period of the graceof tax payment?
○ The Certificate of Tax Payment Type 3 (certifying that there is no amount of unpaid
taxes) cannot be issued during the period of the grace of tax payment.
○ It should be noted that refund of tax paid during the period of the grace of tax
payment cannot be appropriated for the amount of taxes related to the grace of tax
payment, but will be directly paid to the taxpayer.
Q4－8 Our company has been granted grace of tax payment on two or more MAP
cases. Recently, we received the notification from the MAP Office saying thatthe both competent authorities reached an agreement on some of MAP cases,
but the others are still in progress. In this case, how will the grace of tax
payment granted be treated?
○ In such a case, the grace of tax payment regarding that part of MAP cases will not
be allowed on or after the date on which one month has elapsed after the notification
relating to the agreement referred above.
○ In this case, the relevant RTB will notify the amount of taxes related to the grace oftax payment regarding the rest of issues of the MAP cases to the taxpayer and, if any,
the guarantors and third party mortgagors or pledgers by sending a “Notification
That the Amount of Income Tax, etc. Related to the Grace of Tax Payment Has Been
Changed”.
Q4－9 Are there any possibilities to cancel the grace of tax payment?
○ The relevant RTB may cancel the grace of tax payment where:① the taxpayer has withdrawn the MAP request set forth;② the taxpayer does not cooperate in providing the documents necessary for a MAP
consultation;③ where there is a fact that falls under the items of paragraph 1 of Article 38 of the Act
on General Rules for National Taxes, it is found to be impossible for the taxpayer to
pay the tax related to the grace of tax payment in full within the period of the grace oftax payment;④ the taxpayer does not follow an order issued by the Regional Commissioner pursuant
to paragraph 1 of Article 51 of the Act on General Rules for National Taxes regarding29

the security deposited for the tax related to the grace of tax payment;⑤ it is found that the taxpayer is delinquent in paying national tax other than the amountof tax related to the grace of tax payment, except where the Regional Commissioner
finds there is a compelling reason for the new delinquency;⑥ it is found to be inappropriate to grant the grace of tax payment due to any change inthe state of the taxpayers’ assets or other circumstances.
○ Where a grace of tax payment granted has been cancelled, the relevant RTB will notifythat fact to the taxpayer and, if any, the guarantors and third party mortgagors orpledgers by sending a “Notification That the Grace of Tax Payment Has Been Cancelled”.

Q4－10 With respect to local taxes, are there any systems which correspond to thegrace of tax payment mentioned above (Q4－1 through Q4－9)?
○ As for local taxes as well, there is a similar system which corresponds to the grace oftax payment relating to transfer pricing taxation, etc. Specifically, where a taxpayer
who has been subject to transfer pricing taxation, etc. in Japan and has requested
MAP assistance regarding such taxation, upon request from the taxpayers, a certain
period of a grace of collection of local taxes (i.e., prefectural resident tax, municipal
inhabitant tax and business tax) may be granted up to a certain amount of local taxes
and additional taxes to be paid as a result of such taxation (grace of collection of local
taxes)○ Please check the applicable box (i.e. check “yes”) in the “Application for the Mutual
Agreement Procedure” to indicate that you will apply for a grace of collection of local
taxes. (See Q2－6)○ For further information about the grace of collection of local taxes, please ask the
local tax authority relevant to your place of tax payment since it has jurisdiction overa grace of collection of local taxes..

30

5. The MAP Provided for in the private-sector tax Agreement between the Interchange
Association (Japan) and the Association of East Asian Relations (Taiwan) FAQ
Q5－1 Please provide information about the MAP described in the “Agreement between
the Interchange Association and the Association of East Asian Relations for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect toTaxes on Income” (hereinafter referred to as “Agreement”)○ In relation to Taiwan, a MAP provisions are provided for in Article 24 of theAgreement*.
* Relevant domestic legislation has been established to implement the provisions of
the Agreement in Japan.
○ With regard to the mutual agreement procedure provided for in Article 24 of theAgreement, the details of procedure is established in the Commissioner’s Directiveon the Treatment of Article 24 (Mutual Agreement Procedure) of the Agreement.
○ The procedures for MAP regarding Taiwan is basically similar to those of MAP
provided for in general tax treaties. However, there are some differences between
MAP regarding Taiwan and MAP provided for in the general tax treaties. In
particular, it should be noted that, where the contents of a resolution for MAP
regarding Taiwan falls under paragraph 1 of Article 10, paragraph 1 of Article 14 orparagraph 1 of Article 30 of the Mutual Exemption Law for Income of Foreign
Resident, etc., the taxpayer has to file an “Application under Article 4, etc. of the
Ministerial Ordinance for Enforcement of the Mutual Exemption Law for Income of
Foreign Residents, etc. ” in order to get the confirmation of the Commissioner of the
NTA in relation to the resolution for MAP.
○ For more information about the procedure for MAP regarding Taiwan, please see the“Commissioner’s Directive on the Treatment of Article 24 (Mutual Agreement
Procedure) of the Agreement”. (Only available in Japanese)31