Introduction 

Ireland is committed to implementing OECD BEPS Action 14 for effective dispute prevention and resolution. As part of this commitment, Ireland recently changed domestic legislation to ensure that the outcome of a mutual agreement procedure (MAP) can be implemented regardless of Ireland’s statute of limitations, ratified the Multilateral Convention (MLI) and introduced a formal bilateral advance pricing agreement (APA) programme. 

On 31 October, the OECD published its MAP and APA statistics for 2024, which highlight some interesting trends that taxpayers contemplating a MAP or APA with Ireland should be aware of. The report also names Ireland as the winner of most improved jurisdiction for APAs for 2024. 

Statistics and key trends for Ireland

MAP

• In 2024, the average resolution time for transfer pricing (TP) MAP cases in Ireland was 35.57 months, up from 31.50 in 2023. For non-TP cases, the average was 17.62 months up from 8.66 months in 2023. The global average for TP MAP cases was 30.9 months and 24.5 months for all other cases.   

• The rate of resolution of TP MAP cases through competent authority agreement declined year on year in Ireland from 75% in 2023 to 60% in 2024. In contrast, the resolution rate for non-TP cases rose significantly to 81%, up from 46% in 2023. The global average for 2024 was 63.4%, however, this rises to approximately 76% when unilateral relief and domestic resolutions are factored in (note: Ireland did not resolve any TP MAP cases via unilateral relief or domestic resolution in 2024). 

• The number of TP MAP cases withdrawn by taxpayers doubled year on year to 12% in 2024. In addition, 4% of cases were denied access to TP MAP and, in a further 4% of cases, the Irish Competent Authority considered that the objection was not justified. This means that 20% of TP MAP cases did not result in a successful outcome for the taxpayer in 2024. The corresponding figure for non-TP MAP cases was 15%. 

• There was a slight decrease in Ireland’s MAP case inventory with 171 cases outstanding at year end versus 177 at year end in 2023.  

• The primary jurisdictions involved in MAP cases with Ireland remained broadly consistent in 2024, with EU Member States, such as Italy and Spain, the United Kingdom and the United States making up a significant proportion. 

APAs

• The statistics for APAs in Ireland are positive. In 2024 Ireland granted 10 APAs, which represented a tenfold increase on its figures for 2023. This ensured that Ireland was a deserving winner of the most improved jurisdiction for APAs for 2024 from the OECD. 

• As with other jurisdictions, the time it takes to conclude an APA in Ireland continued to be high in 2024. On average the time taken to grant an APA in 2024 was 52.58 months (compared to 39.6 months globally). However, the timeline for Ireland is substantially down from where it stood in 2023, 71.97 months. This demonstrates the significant effort and resources devoted by the Irish Competent Authority to its APA programme. 

• The number of APA applications filed in 2024 was 23 (up from 16 in 2023) and Ireland’s overall APA inventory closed at 80 at the end of 2024 (compared to 68 at the end of 2023). 

Key takeaways for taxpayers 

• The average resolution time for MAP cases in Ireland is significantly higher than the targeted 24 months. The fact that jurisdictions are taking increasingly aggressive approaches when it comes to transfer pricing, such as more frequently asserting profit split in cases involving Ireland, may be a contributing factor in this.  

• 40% of TP MAP cases in 2024 resulted in an outcome where either no relief was granted (e.g. because the taxpayer was denied MAP access) or where only partial relief from double taxation was granted. The statistics do not go into specific detail on why taxpayers were refused access to MAP or withdrew their application, but several factors may feed into these statistics, including:

  • Taxpayers may come under significant pressure to settle tax audits in foreign jurisdictions - where a settlement is made, this can impact on MAP negotiations (e.g. because the competent authority in the foreign jurisdiction cannot legally depart from the negotiated settlement under their domestic law). In these cases, it is not uncommon for only partial relief to be granted, which may account for some of the cases disclosed in Ireland’s 2024 statistics. To safeguard their position, taxpayers should engage in the MAP process early and seek to preserve their rights to MAP in any settlement discussions. 

  • Access to MAP can be denied where, for example, the issue in dispute is not covered by the tax treaty (e.g. because the tax is not a covered tax) or because the time limits set down in the relevant tax treaty have not been met. Taxpayers contemplating MAP should consult the relevant tax treaty early to avoid their MAP request being denied on technical grounds. Consideration of alternative domestic remedies should also be undertaken in parallel, with the possibility of staying any domestic proceedings to allow MAP to proceed also being factored into the overall strategy. 

• The increased number of APAs granted by the Irish Competent Authority in 2024 reflects work done on cases over several years. While APAs require taxpayers to dedicate time and resources to them, Ireland’s statistics show that perseverance with the process does bear fruit and that Ireland is committed to agreeing APAs where possible. The increase is also indicative of a general trend from taxpayers and tax authorities towards favouring dispute prevention where possible. Taxpayers who have been through audit and MAP in recent years should consider the possibility of applying for an APA on more complex intercompany transactions. This is particularly the case where the audit and MAP outcome may have departed in some way from the taxpayer’s general TP policy or the taxpayer now wishes to establish a new TP policy.