An Overview of the OECD MEMAP

The MEMAP strengthens global guidance on resolving cross border tax disputes through the Mutual Agreement Procedure (MAP).

The original version of this manual was published in 2007 and was used extensively at that time. A decision was made in 2024 to update it to reflect practical developments since its publication, incorporating the work under the BEPS Action 14 minimum standard and introducing more detailed, practical guidance for the day-to-day handling of MAP cases.

The MEMAP provides practical steps for initiating a MAP request, including documentation requirements, eligibility criteria, and what to expect during the process. OECD has emphasised the manual is designed to complement, not replace, established criteria in the OECD Model Tax Convention and Transfer Pricing Guidelines. Tax jurisdictions will not be subject to any review or monitoring of their adoption of the best practices and guidance within it, although they will still be peer reviewed on the minimum standards of Action 14 relating to MAP.

However, despite its non-binding nature, MEMAP is expected to still be useful as more jurisdictions have started to engage seriously in MAP, thought in part to be driven by the peer reviews that have been undertaken. In this regard it is noted that the UK requested extension of peer review on minimum standards to include best practice in MAP. The practical guidance in MEMAP will help jurisdictions with less MAP experience improve the effectiveness of their MAP procedures as well as providing ideas for other jurisdictions with large MAP caseloads on how they can continue to improve, including with respect to MAP arbitration where new guidance has been added to MEMAP.

Key Enhancements in the 2026 Edition

• Pre-MAP phase: 

The OECD stresses that jurisdictions should work proactively to prevent disputes before they escalate into MAP cases. This includes improving audit quality, ensuring adjustments are well‑reasoned, and maintaining communication with the audit teams and the competent authorities.

The MEMAP notes that many taxpayers are still unaware of their rights under tax treaties and often rely solely on domestic remedies. This lack of awareness can delay or prevent access to MAP, underscoring the need for clearer communication from tax administrations.

• Greater emphasis on transparency:

The manual encourages tax jurisdictions to publish accessible MAP guidance and to allow pre‑filing meetings, helping taxpayers understand whether MAP is appropriate, how to prepare a complete an effective request, and clearly communicate documentation expectations. Taxpayers should understand the procedural steps, the information required, and the likely timeline for resolution.

• Timelines:

The 24-month resolution target remains central. The MEMAP encourages structured case management, inventory control, and proactive communication between competent authorities to avoid unnecessary delays. Smaller jurisdictions are advised to ensure at least one staff member is always available to manage MAP requests.

• Functional Independence:

There needs to be a clear separation between audit functions and competent authority functions so that MAP decisions are made independently and in good faith, without regard to domestic revenue considerations. The staff involved in the original adjustment should not participate in the MAP resolution of the same case. This separation is essential to maintaining neutrality and ensuring that MAP outcomes reflect treaty obligations.

• Dispute Prevention:

The MEMAP highlights the importance of preventing disputes before they arise. Jurisdictions are encouraged to use interpretative agreements under Article 25(3), bilateral or multilateral APAs, and multi‑year resolution procedures for recurring issues. These tools reduce MAP caseloads and improve certainty for taxpayers.

Insights from the OECD Webinar on 10 February

OECD hosted a webinar on 10 February to provide practical commentary from panellists involved in MAP administration across multiple jurisdictions. Some of the key points discussed include:

Taxpayers who have engaged early, particularly through pre‑filing meetings, have tended to achieve faster and more constructive outcomes. Early dialogue is seen to clarify eligibility, documentation expectations, and potential obstacles before positions harden.

Competent authorities expect clear, contemporaneous documentation that explains the commercial context of the disputed adjustment. It is imperative that transfer pricing documentation is robust, up to date and contemporaneous, with any gaps having been resolved before going into the MAP process. Tax authorities are placing greater weight on the coherence between MAP submissions, transfer pricing documentation, and actual conduct.

Certain tax jurisdictions reported piloting secure digital portals for MAP case handling and information exchange. This update is also expected to enhance transparency and efficiency, and reduce delays associated with manual handling processes.

Overall Impact and our comments

The MEMAP, published on 2 February 2026, along with the insights shared during the 10 February webinar, reinforces OECD’s push towards reducing tax uncertainty, and a more accessible, predictable, and cooperative global dispute‑resolution environment.

For taxpayers, high‑quality, contemporaneous documentation is more important than ever, as emphasised at the 10 February OECD webinar. One can expect clearer processes, more structured case management, and greater emphasis on early engagement and documentation quality.

For tax administrations, the MEMAP provides a roadmap for strengthening MAP capacity and ensuring that treaty obligations are met.

For transfer pricing and permanent establishment cases, the MAP is typically preferable to litigation as it is not as public. In addition, subject to agreement between the competent authorities or with binding arbitration, the MAP covers off both ends of the dispute, as well as affording relief where required. Such a result may not be achieved in litigation.

Would you like to know more?

If you would like to discuss any of the above and how it impacts you, please speak to your usual Blick Rothenberg contact, or Susan Vincent using the form below.