OECD Updates to the Manual on Effective Mutual Agreement Procedures 2026

Why the Revised MEMAP Matters for Businesses

The OECD has released the 2026 Manual on Effective Mutual Agreement Procedures (the MEMAP), the first comprehensive update since the MEMAP’s original publication in 2007.

The revised MEMAP reflects extensive practitioner feedback and the findings of the Base Erosion and Profit Shifting (BEPS) Action 14 Minimum Standard peer reviews. It is designed as a modern, practical guide to dispute prevention, access to MAP and the promotion of tax certainty for both taxpayers and competent authorities.

The 2026 MEMAP goes beyond restating treaty principles. It sets clear behavioural expectations for tax authorities, reinforces taxpayers’ right of access to MAP, and provides practical guidance aimed at resolving double taxation more efficiently. The document is aspirational, being non-binding guidance but listing 59 best practices (including best practices targeted at both competent authorities and taxpayers) alongside practical templates/tools to support more consistent MAP administration. The hope is that it will provide the groundwork for an improved and consistent MAP experience for taxpayers. 

 

Key Features of the Updated MEMAP

MAP allows taxpayers to request that the competent authority initiate a procedure where a tax authority has taken an ‘action’ (eg an adjustment or assessment) that results in taxation not in accordance with a treaty. The most common issues in MAP include transfer pricing, tax residency and withholding taxes.

The MEMAP reinforces that competent authorities should:

• Act in good faith and with a genuine intention to eliminate double taxation;
• Take proactive steps to prevent disputes, including well-reasoned audit conclusions and proportionate dispute resolution pathways;
• Improve taxpayer communication and awareness of treaty rights; and
• Encourage pre-MAP consultations and early issue triage, rather than forcing taxpayers into full MAP processes where that can be avoided.

This reflects a broader shift toward dispute prevention rather than post-assessment remediation. Some of the specific recommendations at each MAP stage are explained in more detail below.

Clearer and more taxpayer-friendly access to MAP (unilateral phase)

Explicit messaging that access to MAP should not be blocked or discouraged. The MEMAP provides enhanced guidance on:

• Streamlining MAP requests and publicly clarifying eligibility requirements;
• Ensuring that taxpayers are not excluded from MAP due to procedural or administrative barriers;
• The circumstances in which unilateral relief should be granted, including where an adjustment merely moves a result within the arm’s-length range.

This guidance is particularly helpful in practice, as unilateral relief can often be the fastest and least costly way to resolve double taxation without escalating to bilateral negotiations.

Practical guidance on bilateral MAP, arbitration and court proceedings

Clearer interaction rules between MAP and domestic remedies. The MEMAP offers practical direction on:

• Preparing effective position papers and conducting productive bilateral negotiations;
• The conduct and implementation of MAP arbitration;
• The interaction between MAP and domestic appeals or court proceedings.

Importantly, it confirms that competent authorities should not suspend bilateral MAP discussions solely because a taxpayer has made protective domestic filings to preserve statutory deadlines, a critical clarification for managing procedural risk. This occurred in the recent Oracle proceedings in Australia,[1] where MAP was discontinued once the taxpayer filed court proceedings to protect its position.  Ultimately the Federal Court on appeal stayed the case so that MAP (including arbitration) could continue, but the Court had decided the other way at first instance. Many tax treaties now include arbitration rights from the Multilateral Instrument, so the MEMAP supports taxpayers’ ability to use arbitration but still keep domestic proceedings as a back-up plan. 

Capacity building, templates and support for emerging jurisdictions

Greater focus on consistency and capability across jurisdictions. The updated MEMAP includes:

• Practical templates and tools to support consistent MAP administration;
• Targeted guidance to assist low-capacity and emerging jurisdictions in building effective MAP programmes.

This is likely to accelerate the uptake and effectiveness of MAP in jurisdictions where dispute resolution has traditionally been slow or uncertain.

 

Additional Clarifications Reinforcing Taxpayer Protections

The MEMAP also addresses several sensitive issues previously left largely unexplored, including:

• Encouraging competent authorities to remain flexible and, where appropriate, deviate from administrative or non-final judicial decisions to eliminate double taxation;
• A clear warning against the use of criminal penalties or threats to deter taxpayers from pursuing MAP;
• Confirmation that competent authorities have a treaty obligation to consider unilateral relief before escalating to bilateral discussions.

 

Implications for Businesses

The revised MEMAP strongly reinforces that MAP should be encouraged. From a practical perspective, MAP is often:

• A more cost-effective route to resolving trapped double taxation;
• Faster than prolonged domestic litigation;
• Capable of delivering cash tax benefits, particularly where double tax relief is delayed.

In our experience, these features make MAP especially attractive, and increasingly relevant, in emerging and lower-capacity jurisdictions, where early MAP engagement can deliver quicker and more predictable outcomes. It is also highly relevant where taxpayers have not obtained certainty via APAs, including because of any limitations applied by revenue authorities to those programs.

Although MEMAP remains non-binding, and practical application will continue to vary by jurisdiction, it provides taxpayers with a useful tool to predict future procedural developments for MAP and to anticipate the likely direction of travel for competent authority behaviour.

 

How DLA Piper Can Help

The DLA Piper team can assist with:

• Developing strategy in relation to APAs, MAP and tax controversy, particularly for high-value cross-border positions;
• Interpreting the updates to the MEMAP including anticipating competent authority positions on procedural issues (eg MAP access);
• Advising on taxpayer treaty rights and strategic use of MAP and unilateral relief;
• Preparing MAP requests and supporting documentation in line with the OECD best practices;
• Managing the interaction between MAP, domestic appeals and court proceedings; and
• Designing tax risk-management frameworks aligned with MAP best practices to prevent disputes before they arise.

Please contact us if you would like to learn more, and for more information on APAs and MAPs processes and acceptance criteria by jurisdiction please visit our APA & MAP Country Guide.

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¹Oracle Corporation Australia Pty Ltd v Commissioner of Taxation (Stay Application) [2024] FCA 1262 and Oracle Corporation Australia Pty Ltd v Commissioner of Taxation [2025] FCAFC 145.