Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023

Faroe Islands

Recent developments relating to MAP in Faroe Islands prior to 15 August 2023

Developments relating to MAP in the tax treaty network

• No developments were reported

Other developments relating to MAP

• No developments were reported

Latest Action 14 Peer Review report

14 April 2022 - https://doi.org/10.1787/d91d70b1-en

Tax treaty network of Faroe Islands

• 11 treaties, applicable to 15 jurisdictions (covering all treaties signed, although not necessarily in force)

• status of MLI: in force.

Table 1. State of play of Faroe Islands's tax treaty network

Treaties in line with the Action 14 Minimum Standard following MLI impact	Treaties where actions are ongoing to make them in line with the Action 14 Minimum Standard	Following impact/actions, remaining treaties that are not in line with Action 14 Minimum Standard
3	0	8

Source: OECD

Faroe Islands's MAP programme

Organisation of competent authority function

• one person, Head of Unit (working on other tasks as well)

• contact persons for MAP requests:

  ❏ Ms. Rúna F. Guttesen Director, Head of Division, Competent Authority, Mutual Agreement Procedure, Legal department, TAKS/Faroese Tax Authority PO Box 2151, Skálatrøð 20, FO-110 Tórshavn, Faroe Islands by email to [e-mail] or [e-mail].

Figure 1. Competent Authority Organisational Structure

Source: OECD

Table 2. Guidance on the MAP process

MAP guidance	Sínámillum avtalur sambært tvískattasáttmálum (Mutual Agreement Procedure, MAP), January 2020	https://www.taks.fo/fo/borgari/skattur/tviskatting/ (Section “Formlig krøv” to be referred to for form and content of a MAP request, including information requirements)
MAP profile	16 December 2019	https://www.oecd.org/tax/dispute/The-Faroe-Islands-Dispute-Resolution-Profile.pdf

Overview of Faroe Islands's MAP Statistics for 2022

Please refer to https://www.oecd.org/tax/dispute/map-statistics-faroe-islands.pdf for details with respect to Faroe Islands's MAP Statistics.

Figure 2. Cases closed in 2022

Source: OECD

Figure 3. Evolution of Faroe Island's MAP caseload (2016-22)

Source: OECD

Table 3. Overview of Faroe Islands’ MAP caseload for 2022

Inventory for year 2022	Opening Inventory 1/1/2022	Cases started	Cases Closed	End Inventory 31/12/2022
Attribution/allocation cases	0	0	0	0
Other cases	3	0	1	2
Total	3	0	1	2

Source: OECD

Table 4. Faroe Islands’ average time to resolve MAP cases in 2022

Cases resolved in year 2022	Pre-2016 cases		Post-2015 cases		All
	Number of cases	Average time	Number of cases	Average time	Number of cases	Average time
				Start to End
Attribution / Allocation cases	0	N/A	0	N/A	0	N/A
Other cases	0	N/A	1	20.71	1	20.71
All cases	0	N/A	1	20.71	1	20.71

Source: OECD