Without prejudice to the remedies that can be formed against the administrative act or the acts adopted under such agreements, no remedy can be made against the closing agreements. Execution: Once the agreement is confirmed, the Spanish tax administration responsible for its implementation is notified. The execution is carried out in accordance with the guidelines of Article 15 of the procedure regulation of the mutual agreement. The MAP is a procedure by which the competent authorities consult and discuss international tax disputes, including transfer pricing disputes (PT), and avoid double taxation resulting from acts of one or two contracting states leading to taxation that does not comply with the applicable double taxation treaty (DTT). Please note that all KSA DTTs contain a MAP rule. Procedure: Competent body: Spanish Office of International Taxation (ONFI), which is part of the Department of Financial and Tax Inspection. The head of the Spanish Office of International Taxation will designate the team or unit. The tax office reviews the application at the same time as the documents submitted. To this end, subjects may be required to submit, complete or clarify the application, as well as other information. The application is accepted or rejected within two months without an obligation to appeal or one month after receipt of the necessary documents and the subject is informed of this decision. If the reciprocal agreement provides for the creation of an advisory committee and no agreement is reached within the allotted time.

the subject may ask the competent authorities to set up such a commission in order to make a decision on the thring issues. Following the reform of the Royal Decree 1794/2008 of 3 November, regulations relating to mutual agreement on direct taxation issues, effective 1 January 2016, the AEAT assumes the role of the competent authority in certain procedures of the reciprocal agreement (Article 2.b). In particular, the AEAT has jurisdiction over mutual agreement procedures with regard to corporate profits (normally Article 7) and related enterprises (normally Article 9) of the applicable double taxation conventions, or if the application is based on the European Arbitration Agreement. The POPs guidelines provide that subjects applying for POPs must provide gazT with transfer pricing documentation in addition to the information necessary to justify the case. There is therefore no arbitration provision in all saudi Arabia`s tax treaties in the event of an agreement between the two contracting states, the case cannot be referred to arbitration. End: The procedure usually ends with an agreement between the competent authorities, who inform the subject so that he can accept or refuse it. It can also end because of retirement. One of its objectives is to reduce double taxation, which is usually the result of transfer pricing (TP). The POPs guidelines are consistent with Sections 20 and 21 of the KSA Transfer Pricing Regulation (TP) which allow tax payers to use the MAP as part of cross-border TPP adjustments.

The POP guidelines are also consistent with Article 9 (associated companies) of most bilateral agreements between KSA and other countries. In addition to the above, below are the steps you need to observe during this process.