On November 15, 2024, the OECD released MAP statistics showing the US MAP program's open inventory of cases decreased modestly for transfer pricing cases, but increased for non-transfer pricing cases in 2023. The US MAP program closed 230 cases (that were started on or after January 1, 2016) and opened 247.¹

The 2023 statistics were released at the OECD's sixth Tax Certainty Day.² For the first time, the OECD also released APA statistics.³ During the event, the OECD announced the 2023 MAP and APA awards.

The 2023 MAP statistics include information from 140 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework), including the United States. The 2023 data covers almost all MAP cases worldwide. Separate statistics are provided for transfer pricing cases and "other" cases (such as withholding, residency, permanent establishment and limitations on benefits) for 2023, including the following data points:

• Opening and ending inventory of MAP cases
• Number of new MAP cases started, completed, closed or withdrawn
• Average cycle time for MAP cases completed, closed or withdrawn

The 2023 MAP statistics also include the number of MAP cases that each jurisdiction has with each of its treaty partners. Moreover, a reporting jurisdiction's performance on key indicators can be compared with the other jurisdictions through an interactive tool.

2023 MAP statistics

The MAP statistics distinguish between transfer pricing cases and "other" cases. A transfer pricing MAP case relates to either attribution of profits to a permanent establishment or determining profits between associated enterprises. Any MAP case that is not a transfer pricing MAP case is characterized as an "other" MAP case. In the MAP statistics reporting, cases received before January 1, 2016, are distinguished from cases received on or after that date. For the jurisdictions that joined the Inclusive Framework after December 31, 2016, the MAP statistics distinguish between cases received before January 1 of the year the jurisdiction joined the Inclusive Framework and cases received on or after that date.

The interactive tool allows users to compare a specific jurisdiction's performance in 2023 for both types of cases. The comparison is based on seven key indicators:

• Starting inventory
• Cases started
• Cases closed
• Ending inventory
• Time from start to close (in months)
• Closing ratio
• Portion of pre-2016 (or pre-Inclusive Framework membership) cases in ending inventory

Users may customize their search by filtering among the indicators and selecting groups of jurisdictions.

The US MAP Program⁴

A comparison of some key points regarding the US MAP program are provided in comparison to 2022 statistics below.

Table 1 Cases Closed: 2022—2023 Comparison

Table 2 Cases Opened: 2022—2023 Comparison

Table 3 MAP Inventory: 2022—2023 Comparison

The IRS took an average of 28.5 months to close transfer pricing cases opened after January 1, 2016, while other cases took an average of 25.3 months from beginning to end.

Although the United States did not shrink the MAP inventory in 2023 like it did in 2022, the number of cases opened and closed shows that the US MAP program continues to be strong. The time it took to close a case in 2023 was about three months shorter for transfer pricing cases and three months longer for other cases than in 2022. Although there are slight variations between 2022 and 2023, they are generally consistent, which may demonstrate that taxpayers can reasonably anticipate the expected timeline when they file a US MAP case.

MAP statistics for all countries

• Approximately 10% more MAP cases were closed in 2023 than in 2022 (transfer pricing cases (7.4%) and other cases (15.8%)). More cases were closed in 2023 than in any previous year.
• The number of new MAP cases opened in 2023 decreased (over -6%) compared to 2022, which is only the second time that there has been fewer cases opened during a year compared with the previous year since 2016.
• MAP continues to be effective. Approximately three-quarters of both transfer pricing and other cases concluded in 2023 with their issues fully resolved through an agreement to eliminate double taxation, the grant of unilateral relief or resolution through a domestic remedy (similar to 73% for transfer pricing cases and other cases in 2022). Approximately 4% of MAP cases were closed with no agreement in 2023, two percentage points more than in 2022.
• On average, the MAP cases closed in 2022 took 32 months for transfer pricing cases (an increase from 29 months in 2022) and approximately 23.4 months for all cases (compared to 22.2 months in 2022). The average time to close all types of cases was 27.3 months, which is above the OECD's recommended target of 24 months.
• The 2023 MAP statistics also include a new data point regarding the age of cases in MAP inventory. Approximately 52% of open MAP cases are less than two years old and 24% are between two and four years old.

2023 MAP awards

The OECD recognized the efforts of the following competent authorities:

• Netherlands, for the shortest time in closing transfer pricing cases, and Australia, for the shortest time in closing other cases
• Canada, for the smallest proportion of pre-2016 cases in inventory
• Netherlands and Norway, for the most effective caseload management
• Canada and France, for transfer pricing cases, and Austria and Switzerland, for other cases, for the pairs of jurisdictions that dealt the most effectively with their joint caseload
• France, for the most improved jurisdiction, which closed an additional 212 cases with positive outcomes compared to 2022, with increases for both transfer pricing and other cases

Implications

The 2023 statistics demonstrate that MAP remains an effective way to eliminate double taxation and taxation not in accordance with a treaty. That said, the processing times for MAP cases remain well above the 24-month completion goal. Having the global MAP caseload decrease for the first time could be attributed to numerous variables, but in any event, is a welcome result.