With the adoption of the Action 14 minimum standard, San Marino has introduced principles for the resolution of tax disputes subject to mutual agreement procedures ("MAP") governed by Article 25 of the OECD Model Tax Convention on Income and on Capital ("OECD Model") involving taxpayers who reside and do not reside in the territory of the Republic of San Marino.
The document to which the members of the Inclusive Framework, including San Marino, must adhere in order to adopt this standard is the Action 14 Final Report, Making Dispute Resolution Mechanism More Effective, which was drafted in 2015 and followed up by the OECD MAP Forum Working Group.
All bilateral double taxation treaties concluded by the Republic of San Marino contain a clause establishing the mutual agreement procedure (MAP), a mechanism designed primarily, in accordance with Article 25 of the OECD Model, as a remedy available to taxpayers who consider that they are or may be subjected to taxation not in accordance with the Conventions.
The agreement procedure may also be initiated directly by the competent authorities of the Contracting States in the event of difficulties or doubts concerning the interpretation or application of the bilateral treaty.
The Ministry of Finance and Budget, through the Department of Finance and Budget, is at the forefront of ensuring an investment-friendly environment for companies operating across borders and adequate consistency of administrative practice with the principles set out in relevant international sources.
For this purpose (reference practice and legislation):
