Legislative changes regarding the Mutual Agreement Procedure (MAP)

Significant changes have been made to the Mutual Agreement Procedure with the objective of strengthening the mechanisms for resolving tax disputes.

A key amendment includes expanding the sphere of applicability to enable non-resident taxpayers to initiate an MAP. The National Agency for Fiscal Administration (ANAF) has also been explicitly designated as the authority responsible for reviewing MAP requests and coordinating consultations with the counterpart state.

An affected party may refer their case to the competent authority of either contracting states if the measures taken have resulted or will result in taxation that is not in accordance with the double taxation treaty.

Moreover, if the convention or agreement does not allow for the submission of request to the competent authority of either state and ANAF turns down a request as inadmissible (on the grounds of missing documents / information or late submission), then the Romanian authorities will notify the competent authority of the other state or initiate bilateral consultations.

The amended legislation also stipulates that the deadline for submitting an MAP request by the affected party is three years from the moment of receipt of the tax administrative act or related notification. If the deadline stipulated in the convention or double taxation agreement is shorter than this, it will automatically be extended to three years.

Another important change establishes that where the taxpayer has other administrative proceedings underway concerning the administrative acts that triggered initiation of the procedure, the outcome of the MAP will become enforceable only after the taxpayer formally withdraws from those other proceedings. Furthermore, the resolution decision issued under an MAP may amend or annul the administrative acts that initially triggered the procedure.

If the resolution deadline expires without an agreement being reached, the affected party may request the initiation of arbitration proceedings, subject to the agreement of the other contracting state. The arbitration decision will be implemented by the ANAF through an official decision, without requiring the consent of the affected party.

Source: Ordinance no. 11 of 24 July 2025 amending and supplementing Law no. 207/2015  (The Tax Procedure Code)