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Judicial Interpretation of Tax Treaties The Use of the OECD Commentary

Carlo Garbarino

Judicial Interpretation of Tax Treaties is a detailed analytical guide to the interpretation of tax treaties at the national level. The book focuses on how domestic courts interpret and apply the OECD Commentary to OECD Model Tax Convention on Income and on Capital. Adopting a global perspective, the book gives a systematic presentation of the main interpretive proposals put forward by the OECD Commentary, and analyses selected cases decided in domestic tax systems in order to assess whether and how such solutions are adopted through national judicial process, and indeed which of these are of most practical value. The book operates on two levels: firstly it sets out a clear and comprehensive framework of tax treaty law, which will be an important tool for any tax practitioner. Secondly, the book provides crucial guidance on issues of tax treaty law as applied at domestic level, such as investment or business income, dispute resolution and administrative cooperation.
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INDEX

Carlo Garbarino

183-day rule 8.1–195

abnormal act of business management doctrine 5.03

abuse

anti-abuse rules, persons covered by 1.39–60

beneficial owner of capital gains and selling of shares, anti-abuse rules 1.122–3

contributions to foreign pension schemes, anti-abuse rule 10.56

domiciliary companies, beneficial owner of dividends 1.78–9

non-active companies, abusive structure 1.82

preferential tax regimes, anti-abuse rules 1.58

reduced treaty withholding taxes for outbound dividends 1.77–89

tax avoidance see tax avoidance

tax fraud 15.16, 15.89–90

see also violations

accident insurance deduction 4.31

ACT (advance corporation tax) 4.104, 12.84, 13.101, 13.119–20, 14.38

active partner income I.72, 4.76, 4.94, 8.55, 8.56, 8.57, 11.24–30, 14.36, 14.39–40

see also partnerships; salaries/wages; working partner

ad hoc exclusion approach, preferential tax regimes 1.55

administrative practices

profits determination 13.70

violation, and exchange of information 15.51–65

administrative or support staff, entertainer exclusions 9.10

advance corporation tax (ACT) 4.104, 12.84, 13.101, 13.119–20, 14.38

advertising

entertainers and sportspersons 9.21, 9.22

income not attributed to performances or appearances 4.97

agent or ship-broker branch offices, international transport 11.67–9, 11.71–2

agents

agents and fiduciaries, and exchange of information 15.87, 15.91–2

dependent see permanent establishment definition, dependent agents (agency-PE)

independent see permanent establishment definition, independent agents

air transport

alienation of ships and aircraft, and capital gains 5.53

enterprises not exclusively engaged in 11.08

flights within a country and business profits article 11.66

helicopter leasing 3.93, 3.102

in international traffic, allocation rule 11.62–78

international transport crews, income from employment 8.47–9

leasing of ships/aircrafts fully equipped 11.75

see also other income and international transport, international transport; shipping

alienation

immovable property, and capital gains 5.47–51, 5.65–6, 5.71, 5.73

movable property, and capital gains 5.52

of property definition 5.31–2, 5.35

of property, profits and gains derived from 1.138

royalties rights 7.23

shares of a company, double taxation elimination methods 12.42–3

shares, gains from, and directors’ fees 8.54

shares in real estate companies, and capital gains 5.54–6

ships and aircraft, and capital gains 5.53

alimony payment deductions 13.42, 13.57

allocated income, premium fraction method, income from immovable property 5.04

allocation approach, entertainers and sportspersons, income accrued to another person 9.58–9

allocation rules I.15–16

boats engaged in inland waterways 11.79–81

business profits 4.01–12

in conditional form I.15–16

directors’ fees 8.50–58

entertainers and sportspersons 9.01–32

government services 10.64, 10.65, 10.76–80, 10.88–93

income from employment 8.01–13

income from equity and from debt 6.01–5, 6.51–7

other income 11.01

pensions 10.01–36

royalties 7.01–14

ships/aircraft in international traffic 11.62–78

students see income from employment, directors’ fees, and students, students and allocation rule

taxing powers, government service 10.76–80

taxing rights, pensions 10.27–36

alternative minimum tax (AMT) (US) 12.90, 13.58

annuities

annuities for ‘past employment’ 10.05–6

instalments of purchased annuities that include an interest element 6.72

redemption 11.10

see also pensions

anti-abuse rules see under abuse

‘any taxes’, exchange of information concerning 15.15–16

appeal rights, exchange of information and assistance in collection 15.103–4

apportionment approach

business profits, deduction of expenses 4.33

pensions for combined private and government services 10.86–7

appreciation see capital gains

apprentice tax (France) 1.135, 11.69, 13.43

arbitration

loan agreement arbitration clause 1.108

see also mutual agreements procedure (MAP), arbitration

arm’s length approach

associated enterprises see business profits and associated enterprises, arm’s length for associated enterprises

attribution rule, separate enterprise fiction 4.18, 4.28

independent agents 3.94

interest income 6.91

royalties 7.79

assistance in collection, assistance in collection of taxes 15.93–119

conservancy measures 15.109–11

cost factors in satisfying a request 15.97

duty of assistance if requirements met 15.94–5

limitations to assistance 15.117–19

procedural issues 15.96–8

reciprocal assistance 15.94–8

revenue-claim 15.99–100

revenue-claim acceptance 15.101–8

revenue-claim, appeal rights 15.103–4

revenue-claim cessation 15.115–16

revenue-claim , duty of acceptance by the Requested-CS 15.105–8

revenue-claim ‘finally owed’ by a person resident of the Requested-CS 15.102–4

revenue-claim, proceedings on 15.114

time-limits and priority for revenue claims 15.112–13

associated enterprises and business profits see business profits and associated enterprises

asymmetry of information 15.02, 15.49–50, 15.54, 15.78

see also exchange of information and assistance in collection

attorney privilege, exchange of information and assistance in collection 15.71, 15.87

attraction see force of attraction

attribution rule

business profits and associated enterprises see business profits and associated enterprises, attribution rule

FTC attributable, double taxation elimination methods 12.98

income ‘attributable’ to a PE in a third-country 11.58–61

atypic pensions (index adjusted) 11.31–3

see also pensions

atypical silent partnership agreements, foreign interest arising from 4.135–9

see also silent partnerships

Ault, Hugh I.78

autonomous interpretation I.62–4

Avery Jones, John I.09, I.61, I.70

Avolio, Diego 3.82

back-to-back loans 1.94–5, 1.101–2

see also loans

Baker, Philip 1.108

bank records, microfilmed 15.25

bank secrecy, and exchange of information see under exchange of information and assistance in collection

bank security deposits 15.75

bankruptcy cases 4.120–21

beneficial owner I.49

capital gains and selling of shares see persons covered by Convention, beneficial owner of capital gains and selling of shares

concept, income from immovable property, capital gains 5.67

dividends see persons covered by Convention, beneficial owner of dividends

entertainers and sportspersons, income accrued to another person 9.50, 9.62, 9.71

interest see persons covered by Convention, beneficial owner of interest

royalties see persons covered by Convention, beneficial owner of royalties

benefits in kind

directors’ fees 8.53

income from employment 8.04–5

services rendered to a State 10.82

bona fide safeguard clauses I.20, 1.48, 1.49–51, 1.82

bonus payments, sportspersons 9.43

‘bordering situations’, other income 11.12–13

branch tax (surcharge) levy, permanent establishment (PE) non-discrimination clause 13.84

branch-subsidiary equal treatment, business profits 4.17

broadcasting

lease of TV programmes generating royalties 7.33

licence of TV programmes generating royalties 7.34

payments for broadcasting of a performance made directly to the performer 9.23–5

building sites see permanent establishment definition, building sites

business activity I.10

same-sector business activities, non-discrimination clause 13.67

test, permanent establishment definition 3.54, 3.107

business connection test 3.17, 3.29, 3.34, 3.38

business profits

for accounting purposes, other income 11.38

entertainers and sportspersons 9.33–5, 9.69, 9.75

flights within a country, international transport 11.66

foreign tax relief, double taxation elimination methods 12.67

lease of TV programmes generating 7.33

payments that are business profits, not royalties 7.24–37, 7.43–50, 7.63–4, 7.67–71

business profits and associated enterprises (Arts. 7 and 9) 4.01–170

allocation rule for business profits 4.01–12

allocation rule for business profits, domestic CFC rules 4.08–12

allocation rule for business profits, profits, definition of 4.06–7, 4.10

correlative adjustments of business profits 4.35–45

correlative adjustments of business profits, MAP, if no spontaneous adjustment 4.42–3

correlative adjustments of business profits, secondary spontaneous adjustments 4.39–41

double taxation relief 4.36–8, 4.45

profits attributable to the PE 4.04–12

taxation on business profits in the SC only if there is a PE 4.02–3

see also profits

business profits and associated enterprises, arm’s length for associated enterprises (Art. 9 ) 4.140–70

arm’s length adjustments 4.165–70

arm’s length concept 4.152

arm’s length price 4.140–64

arm’s length rule for interest and royalties 4.160–64

burden of proof and disclosure of information 4.155

deemed dividends resulting from a controlling shareholder relationship 4.157

double taxation issues 4.167–9

procedural aspects 4.153–7

Transfer Price Report 4.141–51

Transfer Price Report, diversified applications 4.150–51

transfer price and thin cap rules 4.158–9

business profits and associated enterprises, attribution rule 4.13–34

branch-subsidiary equal treatment 4.17

business model adopted by a transnational firm 4.16

deduction of expenses (previous version of Art. 7) 4.29–34

deduction of expenses, accident insurance and general head-office expenses 4.31

deduction of expenses, apportionment of total profits 4.33

deduction of expenses, equal treatment issue 4.17

double taxation avoidance 4.18–22, 4.36–8

functional analysis 4.20

transactions priced in accordance with OECD transfer price Guidelines 4.21–2

business profits and associated enterprises, attribution rule, separate enterprise fiction 4.14–18

adjustments in the SC and double taxation relief in the RC 4.24

arm’s length approach 4.18, 4.28

deductibility of expenses 4.26–7

different amounts as a result of domestic laws 4.28

effects 4.23–8

no notional income, no impact on deductions 4.25–7

business profits and associated enterprises, separate taxation 4.46–139

business profits/losses of a foreign PE and FTC in the RC 4.101–3

force of attraction on outbound dividends 4.62, 4.79–83, 4.126–7

force of attraction on outbound interest 4.63–8, 4.79–81, 4.128–9, 5.18

force of attraction on outbound interest, interests of foreign entities in silent partnerships4.66–8

force of attraction on outbound interest, involvement of PE in decision process 4.65

force of attraction on outbound interest, restricted force of attraction of PE 4.64

force of attraction on outbound royalties 4.69–70, 4.79–81

foreign dividends 4.104

foreign income from immovable property 4.100, 4.106

foreign interest 4.105–7

foreign royalties and creditability of withholding taxes 4.108–9

foreign taxable income 4.99–109

gains from the alienation of movable property of a PE (and Art. 13) 4.71–2

business profits and associated enterprises, separate taxation, foreign exempt income 4.110–39

bankruptcy cases 4.120–21

foreign dividends attributed to a foreign PE 4.126–7

foreign income from immovable property (partnership structures used for real estateinvestment) 4.113–14

foreign interest arising from atypical silent partnership agreements 4.135–9

foreign interest attributed to a foreign PE 4.128–9

interest arising from foreign partnerships 4.130–34

losses due to depreciation and devaluation of the PE’s assets 4.123–5

losses of foreign PEs 4.115–25

recapture rules and deduction of final losses 4.118

business profits and associated enterprises, separate taxation, limited force of attraction of the PE 4.47–60

common structure 4.51–60

dividends, interest, royalties and other income 4.54–60

economic ownership concept 4.57–60

full force of attraction concept 4.48

limited force of attraction concept 4.47–50

business profits and associated enterprises, separate taxation, other income effectively connected to a PE in the SC 4.73–86, 4.98

derogation by the business profits article to the other income article 4.76–8

immovable property 4.85–6

participations of active partners in small companies 4.76

restricted force of attraction of the PE 4.73–8

business profits and associated enterprises, separate taxation, separate treatment of isolated classes of income 4.87–97, 4.105–6

business partnerships, business profits article and pensions article, relationship between 4.94–5

directors’ fees 4.94

income of foreign entertainers and sportspersons in the absence of a PE 4.96–7, 9.33–5

income from immovable property of an enterprise 4.88–92

income from personal services 4.93–7

payments for advertising or sponsorship income not attributed to performances or appearances 4.97

unemployment compensation 4.94

business secrets 7.65, 15.69–70, 15.84, 15.85–6

see also secrecy rules and confidentiality

cables/pipelines

payments made to lease or purchase capacity 7.29

place of business ‘through which’ an enterprise carries on its business 3.33–4

capital gains I.41

acquisitions, nationality non-discrimination clause 13.29

beneficial owner, and selling of shares see persons covered by Convention, beneficial owner of capital gains and selling of shares

fixed levy, nationality non-discrimination clause 13.55

income from immovable property see income from immovable property, capital gains, and capital, capital gains

and inheritance, nationality non-discrimination clause 13.47

share redemptions under capital gains article 6.27–30, 6.33

trust shares and capital gains, residence for treaty purposes 2.66–9

capital tax 1.143–4

carry-forward of credit 12.106–7

carry-forward loss 4.118, 13.77

centre of vital interests test see residence for treaty purposes, tie-break rules for individuals, centre of vital interests test

CFA (Committee on Fiscal Affairs) I.03, I.07, I.82, 4.59

CFC (controlled foreign company) rules

business profits and associated enterprises 4.08–12, 4.107

double taxation elimination methods, credit method (Art. 23B) 12.107

special rule for undistributed dividends 6.47–50

channel approach to counteract ‘stepping-stone’ schemes 1.48, 1.100, 1.111

child care deductions 13.56

citizenship, renouncing, for tax avoidance purposes (US) 5.40–41

CIVs (Collective Investment Vehicles) see persons covered by Convention, Collective Investment Vehicles (CIVs)

‘closely connected’

family ties 1.48, 2.40

income rule, entertainers and sportspersons 9.05–6, 9.26, 9.37, 9.77, 9.78

co-text, OECD Model Tax Convention on Income and on Capital I.59, I.76–7, I.78, I.79, I.81–3, I.86

collection or handling fee instead of royalties 1.113

collective investment tax (Belgium) 1.144–5

Collective Investment Vehicles (CIVs) see persons covered by Convention, Collective Investment Vehicles (CIVs)

commercial office space, income from the rental of 11.77

commissionaire structures 3.83–6, 4.04

Committee on Fiscal Affairs (CFA) I.03, I.07, I.82, 4.59

companies, tie-break rules see residence for treaty purposes, tie-break rules for companies

compensation

deferred, retirement and working-time account scheme 11.22

types, entertainers and sportspersons 9.18–38

compensatory corporation taxes and ACT, foreign shareholder non-discrimination clause 13.119–20

competitions, monetary prizes 9.32, 9.37

computer software, royalties see royalties, payments for computer software

conduct of life analysis, centre of vital interests test 2.39

conduit companies 1.32, 1.40, 1.63, 1.66, 1.68, 1.100

conference speakers, exclusion of, entertainers and sportspersons 9.10

confidentiality see secrecy rules and confidentiality

conflicts of allocation of taxing rights 1.21–4

conflicts of qualifications

board member performing other functions 8.57–8

double taxation elimination methods 12.30–53

income from immovable property 5.10–12

conservancy measures, assistance in collection of taxes 15.109–11

consolidation, domestic 13.103–12

consortium loans 1.96–7

construction/installation project 3.44

see also permanent establishment definition, building sites

contextual interpretation I.65–9

continental shelf and offshore platforms 14.35

contract manufacturing arrangement 3.17, 3.29

contract of service vs contract for service 8.32, 8.34–9

contracts

authority to conclude I.88

authority to conclude in the name of the enterprise 3.74–86

mixed contracts, payments for 7.72–7

contributions to foreign pension schemes 10.48–58

see also pensions

controlled foreign company (CFC) see CFC (controlled foreign company) rules

conversion debt into equity, remuneration arising from 6.25

copyright

payments for computer software 7.53–60, 7.62–4, 7.75

royalties, downloads leading to acquisition of copyright 7.77

corporate boards see income from employment, directors’ fees, and students, directors’ fees

corporate income tax 1.129, 1.135–6, 1.140, 4.32, 5.33, 6.18, 10.67, 11.69, 13.43, 13.46, 13.81

corporate migrations, income from immovable property, capital gains 5.42–3

corporation tax 4.104, 12.84, 13.101, 13.119–20, 14.38

correlative adjustments of business profits see under business profits and associated enterprises

cost factors in satisfying an exchange of information request 15.97

credit method

double taxation elimination methods see double taxation elimination methods, credit method

payment of dividends and ACT 14.38

criminal tax proceedings, and exchange of information 15.27, 15.39

cross-border issues, pensions 10.37–62

custom duties, exchange of information and assistance in collection 15.16

‘days of physical presence’ test and 183-day rule 8.19

de minimis rule, entertainers and sportspersons 9.03–4

debt

economically connected to the valuation of the PE 5.87–90

income from see income from equity and from debt

incurred by head office 5.82–5

see also loans

deduction non-discrimination clause see non-discrimination, deduction non-discrimination clause

deduction of personal costs, income from immovable property 5.06

deemed income, tax on, nationality non-discrimination clause 13.24

deemed sourcing rule, entertainers and sportspersons, income accrued to another person 9.63–70

deferral on gains for intra-group transactions, non-discrimination 13.116–18

deferred compensation, retirement and working-time account scheme 11.22

dependent agents (agency-PE) see permanent establishment definition, dependent agents (agency-PE)

depreciation

income from immovable property, capital gains 5.60, 5.68–71

permanent establishment assets 4.123–5

see also losses

design development, royalty payments for 7.36

detailed instructions I.33, 3.87, 3.88, 3.89, 3.95

digital products, royalty payments for 7.74–7

see also royalties, payments for computer software

directors’ fees

business profits, separate taxation 4.94

income from see income from employment, directors’ fees, and students, directors’ fees

other income 11.24–30

discrimination

based on residence 13.06–10, 13.28

non-resident recipients of dividends 6.06

see also non-discrimination

distributions by partnerships

dividends 1.13–14

profits 6.11–12

see also partnerships

dividends

beneficial owner of dividends see persons covered by Convention, beneficial owner of dividends

characterization based on domestic laws of SC I.60

compensation for lost 11.16

deemed dividends resulting from a controlling shareholder relationship 4.157

double taxation elimination methods 12.57, 12.69–70, 12.96, 12.103

force of attraction on outbound 4.62, 4.79–83, 4.126–7

foreign 4.104, 4.126–7

fund distributions 11.14

immovable property article versus dividend article 5.20

income from see income from equity and from debt, dividends

limited force of attraction of the PE (effectively connected income) 4.54–60

participations owned by PEs, non-discrimination clause 13.79–82

payment, and credit method article 14.38

permanent establishment (PE) I.22

received from a third country, non-discrimination clause 13.87–92

sourced in third country 11.57, 11.58, 11.60

switch-over to credit, double taxation elimination methods 12.69–70

thin cap situations, and distinction between dividends and interest 6.65

withholding tax, double taxation elimination methods, credit method 12.96, 12.103

withholding tax, non-discrimination clause 13.45, 13.54, 13.82

documents, format and form, exchange of information 15.25

domestic consolidation 13.103–12

‘double benefits’ situations 1.26

double non-taxation (double exemption)

elimination methods see under double taxation elimination methods

on other income sourced in the SC 11.08, 11.39–41, 11.50–51

pensions 10.04

transfer of residence of the recipient of pensions 10.24–6

double taxation

arm’s length for associated enterprises 4.167–9

business profits and associated enterprises, attribution rule 4.18–22, 4.24, 4.36–8

distributed dividends 6.05, 6.31

economic 4.167, 6.05–6, 6.31, 6.51, 12.01

extension of arbitration 14.55

immovable property income and double-taxation relief 11.59, 11.61

income sourced in third countries 11.53–4

juridical 11.50–51, 12.01–19

mutual agreements procedure (MAP) 14.08, 14.11, 14.13, 14.16

relief 4.36–8, 4.45

remedies, income from interest 6.51, 6.61, 6.80–83

residence for treaty purposes 2.11

royalties 7.01

triangular cases involving double dip of double taxation relief 13.92

double taxation elimination methods (Arts. 23A and 23B) 12.01–115

alienation of shares of a company, different interpretations 12.42–3

conflicts of qualifications vs conflicting treaty interpretations 12.30–53

double non-taxation (double exemption) 12.33, 12.38, 12.44–53, 12.59

double non-taxation (double exemption), conflicts of qualifications of domestic laws, the RC is not obliged to refrain from exempting (i.e. can exempt) 12.49–53

double non-taxation (double exemption), different interpretations of Convention, obliged to refrain from exempting (i.e. must tax) 12.46–8

double taxation results from conflicts of qualifications, the RC is obliged to provide relief (credit or exemption) 12.35–40, 12.45

double taxation results from different interpretations of Convention the RC is not obliged to provide relief (credit or exemption) 12.41–3

dual residence timing (concurrent full liability to tax) 12.03–5

exemption (full and with progression) and credit (full and ordinary) 12.20–29, 12.30–32

juridical double taxation 12.01–19

RC is obliged to give relief (exemption or credit) if the SC ‘may tax’ 12.30–32, 12.35–43

source-source 12.19

double taxation elimination methods, credit method (Art. 23B) 12.78–115

advance corporation tax (ACT) 12.84

alternative minimum tax (AMT) limitations (US) 12.90

capital tax 12.85

carry-forward of the credit 12.106–7

controlled foreign company (CFC) rules 12.107

domestic rules on FTC fill the gaps of treaties 12.95–8

double taxation relief 12.95

foreign tax must be income tax 12.82–5

foreign tax must be paid 12.86

FTC access and credit abuse 12.96

FTC attributable 12.98

FTC and domestic rules 12.88–98

FTC and domestic rules, limitations 12.89–93

FTC and domestic rules, ‘ordinary limitation’ 12.89

FTC and losses 12.108

FTC as regulated by domestic laws 12.99–108

maximum deduction, FTC not fully covering tax in the SC 12.105–7

maximum deduction, per-income or overall limitation of FTC 12.104

maximum deduction, pro rata rule (‘appropriate’) 12.101–3

maximum deduction, tax on net income in the RC 12.105

maximum FTC deduction 12.99–100

ordinary FTC 12.79–108

principle of progression safeguarded in the RC 12.109–10

qualification of the transaction for the purposes of the treaty FTC 12.97

RC is obliged to give FTC if the SC ‘may tax’ 12.87

tax sparing provisions 6.77, 12.111–15

tax sparing provisions, OECD position 12.113–15

treaty FTC prevails over domestic laws 12.94

windfall tax 12.82–3

withholding tax on dividends 12.96, 12.103

withholding tax on royalties 12.89

double taxation elimination methods, exemption method (Art. 23A) 12.54–77

amount to be exempted 12.65–7

dividends and interest are only subjected to a limited tax in the SC 12.57

double non-taxation 12.75–7

exemption with progression (principle of progression) 12.71–4

exemption in the RC requirement, actual tax must be paid in the SC (‘effective taxation’ concept) 12.63

exemption in the RC requirement, enough to be ‘subject to tax‘ in the SC 12.61–2

exemption relief 12.54–68

foreign tax relief for business profits 12.67

general rule and exceptions 12.56–63

interest paid on a loan obtained to purchase shares of a foreign company 12.66

losses, treatment of 12.68

RC is obliged to give relief if the SC ‘may tax’ (‘subject to tax’ and ‘effectively taxed’) 12.54–62

relief provision method 12.64–8

spillover or domestic tax subsidies of benefits prevention 12.58

switch-over to credit for dividends and interest 12.69–70

double taxation elimination methods, residence-source 12.06–18

exclusive taxation in the RC or the SC 12.07–8

income in a third country of a resident of the RC attributable to its PE in the SC 12.17–18

interaction of the RC, the SC and a third country 12.10–16

non-exclusive taxation in the RC and in the SC combined with relief of juridical double taxation in the RC 12.09

drilling ships, and ‘fixed’ place of business 3.20, 3.25

dual residence

double taxation of other income, income sourced in third countries 11.53–4

residence for treaty purposes, tie-break rules for companies 2.58

residence for treaty purposes, tie-break rules for individuals 2.18, 2.25–6

timing, double taxation elimination methods 12.03–5

dual use of allowances, prevention of 13.72

duration test, ‘fixed’ place of business 3.25–7

duty of acceptance, revenue-claim, assistance in collection of taxes 15.105–8

duty of assistance if requirements met, assistance in collection of taxes 15.94–5

economic double taxation 4.167, 6.05–6, 6.31, 6.51, 12.01

see also double taxation

economic employer concept 8.23–4

economic ownership concept 4.57–60

economic or ‘substance-over-form’ approach, beneficial owner of interest 1.97

see also substance-over-form approach

economic value, tax information (notion and economic value), and exchange of information 15.01–4

effective place of management

concept see residence for treaty purposes, tie-break rules for companies, effective place of management concept

exclusive taxation in the CS, international transport 11.63

international transport, enterprise aboard a ship/boat 11.82–3

‘effective taxation’ concept, double taxation elimination methods 12.63

effectively connected income 4.73–86, 4.98

EIG (European Interest Group) 1.04

emigration and exit taxes, and capital gains 5.35–43

Employee Stock Ownership Plan (ESOP) distributions 11.43

employment article

employment income see income from employment, directors’ fees, and students, income from employment

entertainers and sportspersons 9.42–5

government service 10.70, 10.91–2

other income 11.18–23

pensions 10.11–20

saving clause 5.40–41, 10.20, 13.18

enterprises

associated see business profits and associated enterprises

immovable property of 5.15–21

involved in production of entertainment or sports events 9.61

management, international transport 11.82–3

not exclusively engaged in shipping, inland waterways transport or air transport 11.81

entertainers and sportspersons, beneficial owner of income 1.124

entertainers and sportspersons (Art. 17) 9.01–80

allocation rule 9.01–32

bonus payments 9.43

business profits 9.33–5, 9.69, 9.75

‘closely connected’ income rule 9.05–6, 9.26, 9.37, 9.77, 9.78

compensation types 9.18–38

conference speakers or administrative or support staff, exclusion of 9.10

de minimis rule 9.03–4

definition of entertainers 9.09

definition of sportspersons 9.08, 9.11

employment article application 9.42–5

entertainers, exclusions 9.10–15

government salaries article application 9.47–8

income attributed directly to performances 9.44

income computed according to the domestic laws of the CSs 9.03

and independent activities treaty application 9.40–41

indicators of a close connection between income and performance 9.20

merchandising and advertising payments or sponsorship income 9.22

monetary prizes for competitions 9.32, 9.37

payments for broadcasting of a performance made directly to the performer 9.23–5

payments for image rights 9.26–31, 9.65

pensions article application 9.46

rehearsal and training 9.38

and royalties 9.36

separate taxation, separate treatment of isolated classes of income 4.96–7, 9.33–5

single events 9.37

sponsorship/advertising fees 9.21

stage décor painter, exclusion of 9.14

stage managers or directors, exclusion of 9.12–13, 9.15–17

taxation in the SC and in the RC 9.02–6

treaties not including Art. 17 9.49

entertainers and sportspersons, income accrued to another person 9.50–80

allocation approach 9.58–9

anti-avoidance rules of domestic laws of the SC 9.79–80

beneficial owner rule 9.50, 9.62, 9.71

deemed sourcing rule (tax in the SC) 9.63–70

enterprises involved in the production of entertainment or sports events 9.61

entertainer companies and impresarios 9.60

income paid indirectly to an individual 9.77–80

judicial approaches when Art. 17 § 2 is not present 9.62–80

lack of taxing powers (no tax in the SC) 9.73–6

‘look through’ rule 9.64–8, 9.71–6

management companies 9.55–6, 9.70, 9.72

tax in the SC even if the income is paid to another non-resident person 9.51–61

teams, troupes, orchestras 9.56, 9.57–9, 9.71

entrepreneurial risk, independent agents 3.87, 3.95

equity

income from see income from equity and from debt

private equity financing structure, beneficial owner of interest 1.103–4

‘equivalent wage’ question I.60, 11.23

ESOP (Employee Stock Ownership Plan) distributions 11.43

European Interest Group (EIG) 1.04

evidence, exchanged information used in domestic legal proceedings 15.41

exceptions

exchange gains I.46

income from immovable property, capital gains 5.33–4

exchange of information 15.01–119

attorney privilege 15.71, 15.87

bank secrecy 15.53, 15.79–92

bank secrecy, agents and fiduciaries 15.87, 15.91–2

bank secrecy, ‘tax fraud and the like’ concept 15.89–90

bank security deposits 15.75

broad versus narrow approach 15.12

cases in which only one CS provides a certain procedure 15.65

confidentiality 15.53, 15.66–72, 15.79–92

cooperation of SCs, need for 15.03–4

criminal tax proceedings 15.27, 15.39

custom duties 15.16

exchange of information for the application of treaties and/or domestic laws 15.17–21

exchange of information concerning ‘any taxes’ 15.15–16

exchange of information that existed prior to the treaty 15.33

exchanged information can be used as evidence in domestic legal proceedings 15.41

fishing expeditions, exclusion of 15.13–14

‘foreseeably relevant’ vs ‘necessary’ information 15.09–12, 15.13

format and form of documents 15.25

free-riding concerns 15.49

high-priority non-tax purposes 15.46

high-tax RCs and un-cooperative behaviour 15.04

industry-wide exchange of information 15.23

information gathering measures 15.73–8

information for non-tax purposes 15.45–6

information used in public court proceedings can be quoted from the court files or decisions 15.41

interests of the Requesting-CS vs the Requested-CS 15.55–61

internal disclosure cases 15.38–41

internal disclosure limitations 15.42–6

limitations 15.47–72

modes and techniques of exchange of information 15.22–3

moral hazard and asymmetry of information 15.02, 15.49–50, 15.54, 15.78

new standards for exchange of information, emergence of 15.05–7

no exceptions for the lack of interest by Requested-CS 15.77–8

no prejudice to general procedural rules 15.27–32

non-tax adverse consequences, avoidance of 15.68

notification procedures in the Requested-CS 15.63–4

price for transactions or VAT input tax credits 15.18

principle of hearing both sides 15.40

privilege against self-incrimination rule 15.65

protected trade or business secrets 15.69–70

reciprocal confidentiality 15.36–7

reciprocity issues 15.52–4

restrictive approach where exchange of information must only pertain to the treaties 15.19

royalties cases 15.17

scope 15.08

sensitive information related to tax administration and compliance 15.14

simultaneous examination 15.23

spontaneous exchange of information 15.11, 15.22

summons enforcements (US) 15.13, 15.21, 15.29–33, 15.58–60, 15.64

tax examination abroad 15.23

tax fraud cases 15.16

tax information concept 15.09–16

Tax Information Exchange Agreement (TIEA) 15.06–7

tax information (notion and economic value) 15.01–4

tax transparency network development 15.06

taxpayers’ right to access information received from foreign tax authorities 15.43–4

testimony and microfilmed bank records 15.25

third country disclosure 15.42

treatment of the exchanged information 15.34–46

triangular cases (third country involvement) 15.18

violation of domestic laws or administrative practices of the Requested-CS 15.51–65

violation of secrecy rules or public order 15.66–72

violation of secrecy rules or public order, and confidentiality rules 15.68

violation of secrecy rules or public order, narrow sense of ‘secret’ as a limitation 15.67–8

vital interests of the State (public order) 15.72

see also information

exclusive distribution rights 7.35

executives serving on corporate boards on conclusion of their duties 8.09

see also income from employment, directors’ fees, and students, directors’ fees

exemptions

double see double non-taxation

exempted income for FTC purposes, government service 10.79–80

FTC for foreign-source income I.63

method see double taxation elimination methods, exemption method

pensions under domestic laws 10.19–26

exit taxes

income from immovable property, capital gains 5.35–46

transfer of residence of recipient of pensions 10.24–6

expenses, deduction, business profits and associated enterprises, attribution rule 4.17, 4.26–7, 4.29–34

extra-territorial taxation 6.36–50, 6.84–90

extraordinary social responsibility contribution (Greece) 1.139–40, 1.149

extraordinary taxes 1.137, 1.139–42

family ties closely connected to cultural/social factors 2.40–42

fees for technical services 11.45–8

film rental, royalties 7.32–4

‘finally owed’, revenue-claim 15.102–4

financial advisory and securities underwriting services 3.54

fishing activities 11.74

see also shipping

fishing expeditions, exclusion of 15.13–14

‘fixed’ place of business see permanent establishment definition, ‘fixed’ place of business

force of attraction

full force of attraction concept 4.48

limited see business profits and associated enterprises, separate taxation, limited force of attraction of the PE

other income, business profits and separate taxation 4.73–8

outbound dividends, business profits and separate taxation 4.62, 4.79–83, 4.126–7

outbound dividends, income from equity and debts 6.35

outbound interest, business profits see under business profits and associated enterprises, separate taxation

outbound interest, income from equity and from debt 6.73

outbound royalties, business profits and separate taxation 4.69–70, 4.79–81

outbound royalties effectively connected to a PE 7.78

preparatory or auxiliary activities 3.56

foreign dividends 4.104, 4.126–7

see also dividends

foreign exempt income, business profits see business profits and associated enterprises, separate taxation, foreign exempt income

foreign income from immovable property 4.100, 4.106

see also immovable property

foreign interest 4.105–7

see also interest

foreign partnerships 4.130–34

see also partnerships

foreign royalties 4.108–9

see also royalties

foreign shareholder non-discrimination clause see non-discrimination, foreign shareholder non-discrimination clause

foreign tax credit (FTC)

access and credit abuse, double taxation elimination methods 12.96

attributable, double taxation elimination methods 12.98

business profits/losses of a foreign PE 4.101–3

and domestic rules, double taxation elimination methods 12.88–98

extension to PEs in SC of FTC granted by RC to taxpayers resident there 13.84–92

for foreign-source income I.63

and losses, double taxation elimination methods 12.108

maximum deduction, double taxation elimination methods 12.99–100, 12.104, 12.105–7

ordinary, double taxation elimination methods 12.79–108

RC can take into account exempted income, government service 10.79–80

as regulated by domestic laws 12.99–108

treaty issues about application of rules I.50

foreign taxable income, business profits and separate taxation 4.99–109

‘foreseeably relevant’ vs ‘necessary’ information 15.09–12, 15.13

see also exchange of information and assistance in collection

forfeit taxation of income from savings and investments 1.132, 1.148

fraud 15.16, 15.89–90

free-riding concerns, exchange of information 15.49

frontier workers 8.48–9, 10.74

FTC see foreign tax credit (FTC)

full inbound equal treatment in the SC

foreign shareholder non-discrimination clause 13.102–20

permanent establishment (PE) non-discrimination clause 13.65–74

‘same activities’ inclusion, permanent establishment (PE) non-discrimination clause 13.69

same-sector business activities, permanent establishment (PE) non-discrimination clause 13.67

gambling prizes 11.37

gaming/vending machines, place of business ‘through which’ an enterprise carries on its business 3.33–4

government salaries article application, entertainers and sportspersons 9.47–8

government service

income from employment 8.10–11, 10.90

and pensions see pensions and government service, government service

group contribution relief, foreign shareholder non-discrimination clause 13.105–6

group transactions, permanent establishment (PE) non-discrimination clause 13.74

habitual abode test 2.47–9

handling fee, instead of royalties 1.113

hidden profit

distribution, dividends 6.31–4

distribution, other income 11.17, 11.41

immovable property 11.41

hiring-out of labour 8.31–3

hybrid financial instruments

dividends 6.20–26, 6.67

interest 6.65–70

hybrid judicial transplants I.30, I.35–45, I.88

hybrid situations between use and transfer of royalty rights 7.23

image rights, entertainers and sportspersons 9.26–31, 9.65

immovable property

foreign income from 4.100, 4.106, 4.113–14

and hidden profit distribution 11.41

income 1.24

income effectively connected to a PE in the SC 11.49

income from see income from immovable property, capital gains, and capital, income from immovable property

income from immovable property of an enterprise 4.88–92

income sourced in third countries 11.56, 11.58, 11.59, 11.61

other income effectively connected to a PE in the SC 4.85–6

sale by non-residents 13.59–60

improper use of the treaties, policy issues I.20

incentive limitations of non-resident tax payers 13.73

income accrued to another person, entertainers and sportspersons see entertainers and sportspersons, income accrued to another person

income from employment, directors’ fees, and students (Arts. 15, 16 and 20) 8.01–65

see also salaries/wages

directors’ fees (Art. 16)

alienation of shares, gains from 8.54

and allocation rules 8.50–58

benefits in kind 8.53

board member performing other functions (conflict of qualifications) 8.57–8

and business profits article 8.55

income from independent personal services 8.56

notion of director under domestic laws 8.51–2

qualification problems 8.52, 8.57–8

scope 8.53–4

taxation in the SC and in the RC 8.50

income from employment, directors’ fees, and students, income from employment (Art. 15) 8.01–49

183-day rule 8.15–19

allocation rule 8.01–13

benefits in kind 8.04–5

contract of service vs contract for service and substance-over-form analysis 8.32, 8.34–9

‘days of physical presence’ test and 183-day rule 8.19

and directors’ fees article 8.07–9

‘economic employer’ concept 8.23–4

employee owning a substantial interest in the company 8.04

employer paying remuneration not resident of the SC 8.20–24

exceptions to the general rule 8.06–9, 8.10–11

executives serving on corporate boards upon the conclusion of their duties 8.09

frontier workers 8.48–9, 10.74

general exception to 8.14–46

government service article 8.10–11, 10.90

hiring-out of labour 8.31–3

international transport crews 8.47–9

mobile executives of multinational groups 8.08

notional income provisions 8.05

qualification under domestic laws of the SC 8.4–460

remuneration not ‘borne by’ the PE of the employer in the SC 8.25–46, 8.29–30

remuneration not ‘borne by’ the PE of the employer in the SC, and notional service charge 8.27–8

tax avoidance and 183-day rule 8.18

tax treatment (exemption or taxation) of foreign employment income in the RC 8.12–13

taxation in the SC where the employment activities are carried out 8.03–11

students (Art. 20) 8.59–65

independent services, remuneration for 8.64–5

no taxation in the SC if payments arise from outside the SC 8.59–60

payments exclusively for the purposes of education/training 8.61–3

research centres or laboratories, remunerated by 8.63

research grants 8.61

working as trainees 8.64–5

income from equity and from debt (Arts. 10 and 11) 6.01–91

income from equity and from debt, dividends (Art. 10) 6.01–50

allocation rule 6.01–5

beneficial owner of dividends 6.10, 6.12

concurrent taxation in the RC and the SC 6.02

definition 6.16–34

discrimination of non-resident recipients of dividends 6.06

distributions of profits by partnerships 6.11–12

dividends based on the domestic laws of the SC, characterization of 6.19–34

double taxation on distributed dividends 6.05, 6.31

economic double taxation 4.167, 6.05–6, 6.31, 6.51, 12.01

force of attraction on outbound dividends effectively connected to a PE 6.35

hidden profit distributions 6.31–4

hidden profit distributions, substance over form approach 6.34

hybrid financial instruments 6.20–26, 6.67

income treated as corporate distribution arising from SC 6.33

interest on loans under thin cap rules 6.25–6

jouissance and hybrid financial instruments 6.20–26

open definition and renvoi to domestic laws 6.16

preferential tax regime in the RC 6.07

procedural issues 6.13–15

procedures provided in domestic laws 6.13

profit participating loans and hybrid financial instruments 6.20–26

prohibition of extra-territorial taxation, by the source country of profits 6.36–50

Real Estate Investment Trusts (REITs), distributions by 6.09

redemption of shares 6.27–30

reduced treaty withholding tax on outbound dividends 6.06–9, 6.13–15, 6.18

refund of additional corporate income tax 6.18

reliance on domestic laws of SCs, effects of 6.18

relief in SC conditional upon dividends being subject to tax in RC 6.15

remuneration arising from conversion debt into equity 6.25

scope of 6.04

share redemptions under capital gains article 6.27–30, 6.33

silent partnerships and hybrid financial instruments 6.20–26

special rule for undistributed dividends of a CFC 6.47–50

subjective and objective tax liability 6.15

time participation requirements 6.08

US S-corporations 6.12

withholding tax clause 6.06–15, 6.30, 6.33

see also persons covered by Convention, beneficial owner of dividends

income from equity and from debt, interest (Art. 11) 6.51–91

allocation 6.51–7

arm’s length rule 6.91

beneficial owner of interest 6.61

definition, autonomous definition 6.63–4

definition, specific situations and hybrid instruments 6.65–70

double taxation remedies 6.51, 6.61, 6.80–83

exceptions to lower withholding tax in the SC (preferential tax regime in the RC) 6.60

force of attraction on outbound interest effectively connected to a PE 6.73

instalments of purchased annuities that include an interest element 6.72

interest borne by a PE in the SC and received by a resident of the RC 6.74–8

interest borne by a PE in a third country and received by a resident of the RC 6.79–83

interest effectively connected to, and borne by, a PE 6.74–90

interest paid, understanding of 6.54

no extra-territorial taxation in the SC on interest paid to a recipient in the RC and attributable to a PE in the SC 6.84–90

non-exclusive taxation 6.52–3

‘notional interest’ as not paid 6.54–6

penalty charges payable for late payment 6.71–2

procedural questions and conditionality 6.62

reduced treaty withholding tax on outbound interest 6.58

related expenses and shifting of tax burden 6.59

remuneration from debt versus remuneration from equity, distinction between 6.67–70

scope 6.57

thin cap situations, and distinction between dividends and interest 6.65

triangular cases 6.62

withholding tax clause 6.56, 6.58–62, 6.81

see also persons covered by Convention, beneficial owner of interest

income from immovable property, capital gains, and capital (Arts. 6, 13 and 22) I.50, 5.01–93

see also immovable property

capital (Art. 22) 5.75–93

immovable property 5.75–9

taxation in RC of residents for their immovable property in SC 5.79

taxation in SC of non-residents of immovable property in SC 5.78

capital (Art. 22), movable property 5.80–90

capital other than those listed in §§ 1–3 5.92–3

capital represented by ships/aircrafts 5.91

debts economically connected to the valuation of the PE 5.87–90

debts incurred by head office 5.82–5

property forming part of a PE 5.80–81

taxation in RC of residents for their business movable property in SC 5.87–90

taxation in SC of non-residents owning business movable property in SC 5.82–6

capital gains (Art. 13) 5.22–74

alienation of property definition 5.31–2, 5.35

alienation of shares 5.65–6, 5.71, 5.73

allocation rule and prevention of double non-taxation 5.57–61

‘any property other than that referred to in §§ 1–5’ definition 5.62–4

beneficial owner concept 5.67

corporate migrations 5.42–3

depreciation/losses 5.68–71

disposition of a life income interest in a trust 5.64

emigration and exit taxes (deemed realization) 5.35–43

emigration and exit taxes (deemed realization), retroactivity of domestic exit taxes in respect of treaties 5.38–9

exchange gains 5.33–4

exit taxes, outbound transfer of an asset from a PE 5.44–6

gains from alienation of immovable property 5.47–51

gains from alienation of movable property, of a PE 5.52

gains from alienation of shares in real estate companies 5.54–6

gains from alienation of ships and aircraft 5.53

option to buy real property 5.62–4

passing of property on death 5.31–2

recapture of depreciation 5.60

relevant period of maturation when asset transferred from country of origin to country of destination 5.25–30

renouncing citizenship for tax avoidance purposes (US) ties 5.40–41

sales of shares of companies owning immovable property 5.26, 5.29–30, 5.31, 5.36, 5.42, 5.50–51, 5.54–6, 5.61

securities characterization 5.63–4

securities, redemption of 5.72–4, 6.27

transition from old to new treaty 5.29–30

treated separately or as ordinary income 5.23–4

income from immovable property (Art. 6) 5.01–21

abnormal act of business management doctrine 5.03

allocated income, premium fraction method 5.04

application of based on domestic laws 5.02–5

appreciation of immovable property 5.05

conflicts of qualifications between RC and SC 5.10–12

deduction of personal costs 5.06

immovable property of an enterprise 5.15–21

immovable property article versus capital gains article 5.21

immovable property article versus dividend article 5.20

immovable property article versus interest article 5.18–19

immovable property definition 5.08–12

income characterization 5.16–17

legal use of immovable property 5.13–14

losses incurred by foreign immovable property 5.07

Real Estate Investment Trusts (REITs) 5.20, 5.56

tax treatment in RC of income of foreign immovable property of taxpayers resident of that RC 5.06–21

undeveloped real property and promissory notes 5.09

income tax 1.28–37

foreign tax must be income tax, double taxation elimination methods 12.82–5

independent activities treaty application, entertainers and sportspersons 9.40–41

independent agents see permanent establishment definition, independent agents

‘independent entity’ principle (Switzerland) 13.78

independent personal services

directors’ fees 8.56

nationality non-discrimination clause 13.25

students 8.64–5

‘indirect ownership’ concept 1.88, 1.106, 6.31

individual retirement schemes and preferential tax treatment 10.46–7

see also pensions

individuals, tie-break rules see residence for treaty purposes, tie-break rules for individuals

information

disclosure, burden of proof, arm’s length for associated enterprises 4.155

exchange see exchange of information and assistance in collection

‘foreseeably relevant’ vs ‘necessary’ 15.09–12, 15.13

gathering, preparatory or auxiliary activities 3.63, 3.67

know-how, payments, and royalties 7.22, 7.38–50, 7.65–6, 7.73

inheritance

and capital gains 13.29, 13.47

passing of property on death 5.31–2

tax on shares 3.105

inland waterways, allocation rule for income from boats engaged in inland waterways transport 11.79–81

see also shipping

insurance industry

accident insurance deduction 4.31

permanent establishment definition, independent agents 3.89–91, 3.94, 3.96

intellectual property use, royalties, withholding tax issues 7.11–12

interest I.63

arm’s length rule 4.160–64

beneficial owner of interest see persons covered by Convention, beneficial owner of interest

and bona fide safeguard clauses 1.51

deduction restrictions, nationality non-discrimination clause 13.46

deduction, thin cap rules 13.50–51

double taxation elimination methods 12.57, 12.66, 12.69–70

foreign interest, separate taxation 4.105–7

from foreign partnerships 4.130–34

immovable property article versus interest article 5.18–19

income from see income from equity and from debt, interest

income sourced in third countries 11.57, 11.58, 11.60

limited force of attraction of the PE (effectively connected income) 4.54–60

paid on a loan obtained to purchase shares of a foreign company 12.66

payments to resident/non-resident taxpayers and non-discrimination standard I.42

received from a third country, non-discrimination clause 13.87–92

stripping, mutual agreements procedure (MAP) 14.06–7

switch-over to credit for 12.69–70

intermediary entities, beneficial owner of interest 1.71–3, 1.98, 1.105–6

internal disclosure cases, exchange of information and assistance in collection 15.38–41

international courtesy, government service 10.66

international organizations, document of reference I.06

international transport see other income and international transport, international transport

international transport crews, income from employment 8.47–9

interpretive techniques I.16–18, I.83, I.87

ambulatory vs static I.70–75

strict contextual I.67, I.78, I.79, I.81, I.84, I.86

strict and purposive I.54–8, I.75, I.77, I.86

intra-group services

multinational groups 3.113–18

payments for 7.40–41

intra-group transactions, foreign shareholder non-discrimination clause 13.116–18

investment income 11.14–17

forfeit taxation 1.132, 1.148

related to shipping activities 11.76–8

isolated classes of income, and business profits see business profits and associated enterprises, separate taxation, separate treatment of isolated classes of income

isolated other income 11.07–48

income sourced in third countries 11.55–7

joint activities, profits from the participation in, international transport 11.84

joint-stock company, limited partnership conversion to 11.29–30

jouissance shares and hybrid financial instruments 6.20–26

judicial transplants

effective I.30–34

hybrid I.30, I.35–45, I.88

interpretive solutions or principles I.23–50

interpretive techniques of tax treaties I.51–75

juridical double taxation 11.50–51, 12.01–19

see also double taxation

know-how, payments, and royalties 7.22, 7.38–50, 7.65–6, 7.73

see also information

late payments, penalty charges 6.71–2

leasing activities

capacity of cables/pipelines 7.29

helicopter leasing 3.93, 3.102

payments for the leasing of equipment 7.25–7, 11.13

satellite transponder leasing agreements, royalties 7.28–30

ships/aircrafts fully equipped 11.75

spare parts 3.30–32, 3.95

TV programmes generating business profits 7.33

legality principle, and mutual agreements procedure (MAP) 14.09–10, 14.34–40

‘liable to tax’ interpretation I.32, I.55–7

licence of TV programmes generating royalties 7.34

life maintenance, lack of criterion 10.16

see also pensions

limitation-of-benefits (LOB) approach I.20, 1.52

limited force of attraction

separate taxation see business profits and associated enterprises, separate taxation, limited force of attraction of the PE

see also force of attraction

limited source taxation of a pension 10.35

see also pensions

loans

agreement arbitration clause 1.108

back-to-back 1.94–5, 1.101–2

consortium 1.96–7

interest under thin cap rules 6.25–6

losses deriving from changes in the value of 11.38

revolving and converted 1.94–5

see also debt

LOB (limitation-of-benefits) approach I.20, 1.52

local authorities 1.02, 1.126, 6.59, 13.121

exchange of information 15.08, 15.99

government service 10.05, 10.43, 10.63, 10.65–7, 10.76, 10.83, 10.88–90

residence for treaty purposes 2.02, 2.15

local business tax 1.134, 1.136

location test, ‘fixed’ place of business 3.20–21

look-through approach I.20

beneficial owner of capital gains and selling of shares 1.119–20

Collective Investment Vehicles (CIVs) 1.35–7

entertainers and sportspersons, income accrued to another person 9.64–8, 9.71–6

persons covered by Convention 1.42–5, 1.119–20

losses

deriving from changes in value of loans 11.38

foreign PE losses, lack of I.46

and FTC, double taxation elimination methods 12.108

income from immovable property, capital gains 5.68–71

incurred by foreign immovable property 5.07

loss relief election, nationality non-discrimination clause 13.48–9

recapture rules and deduction of final losses, foreign exempt income 4.118

transfer, non-discrimination clause 13.74, 13.76–7

treatment of, double taxation elimination methods 12.68

treatment of PE losses, non-discrimination clause 13.76–8

see also depreciation

lottery prizes 1.133

lump-sum payments

government service 10.82

pensions 10.07, 10.08–9, 10.12, 10.16, 10.21, 10.24, 10.36

maintenance training services, international transport 11.73

management

business management doctrine 5.03

companies, entertainers and sportspersons 9.55–6, 9.70, 9.72

place of management see place of management

managerial activities, permanent establishment definition, exceptions for preparatory or auxiliary activities 3.65–6, 3.104, 3.108–10

MAP see mutual agreements procedure (MAP)

‘may tax’, double taxation elimination methods 12.30–32, 12.35–43, 12.54–62

merchandising payments, entertainers and sportspersons 9.22

MFN (most-favoured nation) treatment, lack of provision 13.12–13

mixed contracts, payments for 7.72–7

mobile executives of multinational groups 8.08

see also multinationals

monetary prizes for competitions 9.32, 9.37

money transfers 3.53

moral hazard and asymmetry of information 15.02, 15.49–50, 15.54, 15.78

see also exchange of information and assistance in collection

‘more burdensome’ treatment, nationality non-discrimination clause 13.52–5

most-favoured nation (MFN) treatment, lack of provision 13.12–13

movable property

gains from the alienation of 4.71–2

income from see income from immovable property, capital gains, and capital, capital, movable property

multinationals

and intra-group services 3.113–18

mobile executives of multinational groups, income from employment, directors’ fees, and students, income from employment 8.08

multiple intermediary companies structure, beneficial owner of dividends 1.87–8

municipal business taxes on payroll 1.129

municipal tax on aggregate salaries 1.147–8

mutual agreements procedure (MAP) 14.01–58

correlative adjustments of business profits 4.42–3

effective place of management concept 2.70

test 2.52

mutual agreements procedure (MAP), arbitration 14.46–58

arbitration not available for cases of ‘potential violation’ 14.54

concept of case presented to Competent Authority 14.53

concept of ‘unresolved case’ as pre-condition for request 14.52

decision 14.56–8

extension of arbitration to cases of double taxation not provided for in Convention 14.55

as extension of the MAP that deals with unresolved issues 14.47–9

procedure if a mutual agreement is not reached within two years 14.46

request for arbitration (after 2-year from presentation of case to MAP) 14.51

mutual agreements procedure (MAP), type-1 adjudicative MAP 14.01–58

activation 14.11–16

communications 14.45

Competent Authorities’ duty to negotiate 14.28–30

continental shelf and offshore platforms 14.35

and credit method article and payment of dividends and ACT 14.38

double taxation issues 14.08, 14.11, 14.13, 14.16

duty to implement the mutual agreement in the CSs 14.33

implementation of MAP and domestic legal remedies 14.41

implementation of the mutual agreement 14.32–41

initiation of MAP 14.31

issues not susceptible of MAP 14.09–10

and legality principle 14.09–10, 14.34–40

and legality principle and dispute settlement 14.10

MAP activated by probable risk of double taxation 14.11

MAP can be activated and also reached before a domestic judicial decision is rendered 14.22–3

MAP can be activated only after a domestic judicial decision is rendered 14.18

MAP can be activated only if domestic remedies are relinquished 14.19–21

MAP procedure 14.24–31

objections do not suspend domestic remedies 14.16

objections not to be presented to Courts 14.14–15

pre-emptive MAP 14.20–21

presentation of objections 14.12–16

presentation of objections, time of notification 14.13

request of MAP before/during domestic remedies 14.17–23

resolution without resort to MAP 14.27

right of taxpayer to apply and duties of Competent Authorities 14.26

severance payments 14.37

stage 1 (dealings between the taxpayer and the RC) 14.26–7

stage 2 (dealings between CSs) 14.28–31

taxation of an interest stripping transaction 14.06–7

treaty prevailing over mutual agreement 14.39–40

typical cases 14.06–8

withholding tax time limits 14.13

mutual agreements procedure (MAP), type-2 and 3: administrative and legislative MAP 14.42–4

type-2 MAP – difficulties in interpretation or application of the Convention 14.42–3

type-3 MAP – elimination of double taxation in cases not provided for in the Convention 14.44

nationality non-discrimination

clause see non-discrimination, nationality non-discrimination clause international transport 11.68

nationality test 2.50–51

negotiation requirements, mutual agreements procedure (MAP) 14.28–30

net wealth tax 1.130–31, 1.148, 5.78, 5.79, 5.83, 5.93, 13.121

new standards for exchange of information, emergence of 15.05–7

see also exchange of information and assistance in collection

no prejudice to general procedural rules 15.27–32

see also exchange of information and assistance in collection

non-active companies, abusive structure 1.82

non-discrimination (Art. 24) I.41–2, I.63, 13.01–121

application I.41–2, I.63, 13.121

broad definition of discrimination, lack of 13.05

broad equal protection clause, lack of 13.04

differentiated treatments imposed by treaty, lack of elimination of 13.17–18

differentiated treatments for public bodies and not profit organizations, lack of elimination 13.19–20

discrimination based on residence, lack of cover 13.06–10, 13.28

MFN treatment, lack of provision 13.12–13

provisions lacking 13.03–20

reciprocity provision, lack of 13.14–16

reverse discrimination, lack of prevention cover 13.11

saving clause 5.40–41, 10.20, 13.18

stateless persons non-discrimination clause 13.61–3

stateless persons non-discrimination clause, New York Convention 13.62

structure 13.21

see also discrimination

non-discrimination, deduction non-discrimination clause 13.93–100

domestic thin cap rules as legitimate anti-abuse rules 13.99–100

full inbound equal treatment in the SC 13.93–100

thin cap cases 13.94–100

non-discrimination, foreign shareholder non-discrimination clause 13.101–20

compensatory corporation taxes and ACT 13.119–20

domestic consolidation 13.103–12

domestic deferral on gains for intra-group transactions 13.116–18

extension of group contribution relief to foreign affiliated companies 13.105–6

full inbound equal treatment in the SC 13.102–20

tax consolidation of companies with foreign shareholders 13.107–12

withholding tax on outbound dividends 13.113–15

non-discrimination, nationality non-discrimination clause 13.01–2, 13.22–60

acquisitions through inheritances and capital gains 13.29

alimony payment deductions 13.42, 13.57

alternative minimum tax (US) 13.59

apprentice tax (France) 1.135, 11.69, 13.43

basic inbound comparable 13.48–9

capital gains, fixed levy 13.55

child care deductions 13.56

comparable situations and same treatment 13.41–3

equal treatment of nationals vs non-nationals 13.26–7

‘in the same circumstances’ comparable situation 13.38–40

independent personal services 13.25

inheritance and capital gains 13.47

interest deduction restrictions 13.46

interplay of nationality/residence 13.30–37

interplay of nationality/residence, companies 13.33

interplay of nationality/residence, individuals 13.32, 13.34–7

loss relief election 13.48–9

‘more burdensome’ treatment 13.52–5

nationals of the CSs (the RC or the SC, but not of a third country) even if not resident of the CSs 13.23–5

non-comparable situations 13.44–7

notional inbound comparable 13.50–51

objective scope (comparables) 13.38–60

‘participation penalty’ (Germany) 13.54

personal allowances comparability 13.56–8

profit calculation and taxation, right to apply standard method 13.52

refund of withholding tax 13.52

sale of immovable property by non-residents 13.59–60

share loss deductions 13.41

tax credit for interest on student loans 13.41

tax on a deemed income 13.24

tax neutral transfer of assets 13.53

thin cap rules (France) and interest deduction 13.50–51

withholding tax on dividends 13.45, 13.54

non-discrimination, permanent establishment (PE) non-discrimination clause 13.64–92

branch level interest tax 13.84

branch tax (surcharge) levy 13.84

different mode of taxation of the PE does not imply discrimination 13.70–73

dividends, interest and royalties received from a third country 13.87–92

dual use of allowances, prevention of 13.72

extension to the PEs in the SC of the FTC granted by the RC to taxpayers resident there 13.84–92

full inbound equal treatment in the SC 13.65–74

full inbound equal treatment in the SC, legal structure similarities 13.68

full inbound equal treatment in the SC, ‘same activities’ inclusion 13.69

full inbound equal treatment in the SC, same-sector business activities 13.67

group transactions 13.74

incentive limitations of non-resident tax payers 13.73

‘independent entity’ principle (Switzerland) 13.78

profits determination, administrative practices 13.70

structure and rate of tax 13.83

transfer of losses 13.74, 13.76–7

treatment of dividends in respect of participations owned by PEs 13.79–82

treatment of PE losses 13.76–8

triangular cases involving double dip of double taxation relief in the RC and the SC 13.92

withholding tax on out-going dividends 13.82

non-exclusive source taxation of pension payments 10.31–4

see also pensions

non-exclusive taxation 6.52–3

non-periodic remuneration

pensions 10.07

see also pensions

non-tax purposes, exchange of information 15.45–6, 15.68

not for profit organizations, differentiated treatments 13.19–20

notification procedures, exchange of information and assistance in collection 15.63–4

notional inbound comparable, nationality non-discrimination clause 13.50–51

notional income

income from employment 8.05

no notional income, no impact on deductions 4.25–7

notional interest

as not paid 6.54–6

and shareholdings 11.11, 11.15

OECD Model Tax Convention on Income and on Capital, Commentary on I.01–88

alternative policies I.20

ambulatory vs static interpretation I.70–75

autonomous interpretation I.62–4

beneficial owner see beneficial owner

broad contextual interpretation I.68, I.76, I.77, I.78, I.80–81, I.85, I.86

co-text I.59, I.76–7, I.78, I.79, I.81–3, I.86

Committee on Fiscal Affairs (CFA) I.03, I.07, I.82, 4.59

common features of domestic tax systems, contribution to I.29

comparative analysis I.28–9

competition among national judicial solutions I.29

contextual interpretation I.65–9

convergence or divergence in respect of I.08–9, I.29

and domestic tax systems I.05, I.11–14

factual analysis at national level I.47, I.48

gaps in Model-Commentary integrated system I.46–50

improper use of the treaties, policy issues I.20

interpretive techniques I.16–18, I.83, I.87

Member and non-Member country negotiations, document of reference I.06

parameters and indicators, domestic creation of I.47, I.49

principles, foundational nature of I.18–19

principles, indeterminacy of I.18–19

renvoi method I.59–61, I.86, 5.75, 6.16

‘soft tax law’ implementation in domestic tax systems I.05

strict contextual interpretation I.67, I.78, I.79, I.81, I.84, I.86

strict and purposive interpretation I.54–8, I.75, I.77, I.86

text and meaning of rule, distinction between I.17

office space, income from the rental of commercial 11.77

offshore platforms and continental shelf 14.35

ordinary course of business, agent acting in 3.97–103

other income

business profits and separate taxation see business profits and associated enterprises, separate taxation, other income effectively connected to a PE in the SC limited force of attraction of the PE 4.54–60

other income and international transport (Arts. 21 and 8) 11.01–84

international transport (Art. 8) 11.62–84

agent or ship-broker branch offices 11.67–9, 11.71–2

allocation rule for income from boats engaged in inland waterways transport 11.79–81

apprentice tax (France) 1.135, 11.69, 13.43

combination of exclusive taxation in the CS of the effective place of management and in the RC 11.65

core and extended activities 11.70

directly connected and ancillary activities 11.71

effective place of management of an enterprise aboard a ship/boat 11.82–3

enterprises not exclusively engaged in shipping, inland waterways transport or air transport 11.81

exclusive taxation in the CS of the effective place of management 11.63

exclusive taxation in the RC 11.64

flights within a country and business profits article 11.66

income from the rental of commercial office space 11.77

investment income related to shipping activities 11.76–8

leasing of ships/aircrafts fully equipped 11.75

maintenance training services 11.73

nationality non-discrimination clause 11.68

overnight deposits generating interest 11.72

profits from the participation in joint activities 11.84

residual taxation in the SC 11.66–9

ships/aircraft in international traffic, allocation rule 11.62–78

other income (Art. 21) 11.01–61

active partner income 8.56, 8.57, 11.24–30, 14.39

allocation rule 11.01

atypic pensions (index adjusted) 11.31–3

basic rule (exclusive taxation in the RC) 11.09–11

‘bordering situations’ 11.12–13

business profits for accounting purposes 11.38

concurrent taxation in the RC and in the SC 11.42–8

dividend fund distributions 11.14

dividends, compensation for lost 11.16

double non-taxation on other income sourced in the SC, prevention of 11.08, 11.39–41, 11.50–51

Employee Stock Ownership Plan (ESOP) distributions 11.43

employment termination payments 11.19–20

equivalent wage, and employee owning a substantial interest in company 11.23

fees for technical services 11.45–8

gambling prizes 11.37

hidden profit distribution 11.17

immovable property and hidden profit distribution 11.41

income effectively connected to a PE in the SC 11.49–61

income effectively connected to a PE in the SC, and income from immovable property 11.49

and income from directors’ fees 11.24–30

and income from pensions 11.31–3

income ‘not dealt with by other articles of the Convention’ and sourced in the SC 11.06–51

income types 11.12–38

investment income 11.14–17

isolated other income in the SC 11.07–48

losses deriving from changes in the value of loans 11.38

notional yield of share investments 11.15

payments for the leasing of equipment 11.13

personal service income 11.18–34

personal service income, and income from employment article 11.18–23

redemption of an annuity 11.10

relief from juridical double taxation in the RC if tax in the SC 11.50–51

retirement and working-time account scheme (deferred compensation) 11.22

reversibility pensions 11.31

role 11.02

severance payments 8.09, 9.42, 11.19–20, 14.10, 14.37

shareholdings, and non-redeemable loan 11.36

shareholdings and notional interest 11.11

shareholdings, and right of use of holiday apartments 11.36

social security benefits and temporary unemployment 11.21

stock option indemnity, and limited partnership conversion to joint-stock company 11.29–30

student maintenance allowance 11.40

student scholarship stipend 11.34

and students article 11.34

other income (Art. 21), income sourced in third countries 11.02, 11.52–61

dividends sourced in third country 11.57, 11.58, 11.60

double taxation of other income country in cases of dual residence, prevention of 11.53–4

immovable property 11.56, 11.58, 11.59

immovable property income and double-taxation relief 11.59, 11.61

income ‘attributable’ to a PE in a third-country 11.58–61

interest and royalties sourced in a third country 11.57, 11.58, 11.60

isolated other income 11.55–7

overlapping of national pensions systems and mismatches 10.27–8

see also pensions

overnight deposits generating interest, international transport 11.72

parent-subsidiary structures and abuse of EU Parent-Subsidiary Directive 1.84–5

participation penalty (Germany) 13.54

partnerships

business partnerships, business profits article and pensions article, relationship between 4.94–5

chain 1.07–8, 1.119, 5.59

dividend distributions 1.13–14, 6.11–12

entitled to treaty benefits as a person 1.19

fiscally transparent 2.14

foreign 4.130–34

limited partnership conversion to joint-stock company 11.29–30

participations of active partners in small companies 4.76

persons covered by Convention 1.09–29

silent see silent partnerships

tax-transparent 1.15–20, 1.27–8

treated as a company resident 1.11–12

treaty entitlement I.19, 1.10–20

working/active partner income I.72, 4.76, 4.94, 8.55, 8.56, 8.57, 11.24–30, 14.36, 14.39–40

pass-through, beneficial owner of interest 1.99–100

past employment, pensions and annuities for 10.05–6

penalty charges payable for late payment 6.71–2

pensions

atypic (index adjusted) 11.31–3

business partnerships, business profits article and pensions article, relationship between 4.94–5

entertainers and sportspersons 9.46

income from 11.31–3

misalignment of national systems 21

reversibility 11.31

tax on termination of a private pension 1.149

see also annuities; retirement

pensions and government service (Arts. 18 and 19) 10.01–93

government service (Art. 19) 10.63–93

activity focus, not public nature of employer 10.74–5

allocation rule 10.64, 10.65

allocation rules for income from government services 10.88–93

allocation of taxing powers 10.76–80

application of Arts. 15, 16, 17, and 18 to remuneration for government services 10.90–93

benefits in kind received in respect of services rendered to a State 10.82

and employment article 10.91–2

exception for salaries received for services rendered in the RC 10.64, 10.65, 10.82

‘in the discharge of functions of a governmental nature’ 10.72–3

income types 10.81–7

local authorities 10.05, 10.43, 10.63, 10.65–7, 10.76, 10.83, 10.88–90

lump-sum payments 10.82

and pensions article 10.93

pensions for combined private and government services 10.84–7

pensions for combined private and government services, apportionment approach 10.86–7

pensions paid ‘out of funds created by’ the CS 10.83

public body concept 10.67–71

RC can take into account exempted income for FTC purposes 10.79–80

rules on international courtesy 10.66

salaries, wages, other similar remuneration, and non-periodic remuneration 10.82

SC has exclusive right to tax and the RC using FTC must exempt 10.76–8

scope 10.66–75

services rendered in the context of an employment contract with a private employer 10.70

social security payments under (tax only in SC) 10.43

structure 10.63–5

pensions (Art. 18) 10.01–62

allocation rule 10.01–26

allocation of taxing rights 10.27–36

contributions to foreign pension schemes 10.48–58

contributions to foreign pension schemes, anti-abuse rule 10.56

contributions to foreign pension schemes, deductibility of contributions in the host-country 10.48–52

contributions to foreign pension schemes, treating contributions in the host-country as if they were in the home-country 10.55–8

cross-border issues 10.37–62

cross-border issues, exempt pensions 10.38–9

cross-border issues, social security payments equated to government pensions 10.45

cross-border issues, statutory social security schemes 10.40–45

double non-taxation possibilities 10.04

and employment article 10.11–20

exclusive source taxation of pension payments 10.30

exclusive taxation in the RC of the recipient of pensions 10.01–4

exemptions under domestic laws 10.19–26

factors for characterization of other remunerations as ‘pensions’ 10.08–10

individual retirement schemes and preferential tax treatment 10.46–7

lack of life maintenance criterion, and payment as employment income rather then as a limited source taxation of a pension 10.35

lump-sum payments 10.07, 10.08–9, 10.12, 10.16, 10.21, 10.24, 10.36

national classifications 10.28

non-exclusive source taxation of pension payments 10.31–4

non-periodic remuneration 10.07

overlapping of national systems and mismatches 10.27–8

pension 10.16

pensions and annuities for ‘past employment’ 10.05–6

pensions for combined private and government services 10.84–7

periodic payments based on a formula related to the duration of employment 10.17

redemptions of pensions rights 10.10, 10.13–15

self-employed persons 10.44

social security payments 10.05–6

tax obstacles to the portability of pension rights 10.59–62

taxable income from stock options, and employment article 10.18

taxation of pensions if the RC does not tax 10.36

transfer of residence of the recipient of pensions 10.21–6

transfer of residence of the recipient of pensions, allocation of taxing rights 10.23

transfer of residence of the recipient of pensions, double non-taxation and exit charges 10.24–6

performance

and income, close connection between, entertainers and sportspersons 9.20, 9.44

payments for broadcasting made directly to performer 9.23–5

periodic pension payments based on a formula related to the duration of employment 10.17

see also pensions

permanent establishment

business profits and separate taxation see business profits and associated enterprises, separate taxation, other income effectively connected to a PE in the SC

debts economically connected to the valuation of 5.87–90

dividends, force of attraction on outbound dividends effectively connected to a PE 6.35

foreign interest attributed to a foreign PE 4.128–9

interest borne by a PE in the SC and received by a resident of the RC 6.74–8

interest borne by a PE in a third country and received by a resident of the RC 6.79–83

interest effectively connected to, and borne by, a PE 6.74–90

interest, force of attraction on outbound 4.64, 4.65

interest, no extra-territorial taxation in the SC attributable to a PE in the SC 6.84–90

limited force of attraction see business profits and associated enterprises, separate taxation, limited force of attraction of the PE (effectively connected income)

losses due to depreciation and devaluation of assets 4.123–5

losses of foreign PEs 4.115–25

non-discrimination clause see non-discrimination, permanent establishment (PE) non-discrimination clause

preparatory/auxiliary activities I.38, I.63

profits attributable to 4.04–12

property forming part of 5.80–81

restricted force of attraction 4.73–8

right of use test I.33

taxation on business profits in the SC only if there is a PE 4.02–3

permanent establishment definition (Art. 5) 3.01–118

activities carried out within premises of recipients 3.08

authority to conclude contracts in the name of the enterprise 3.74–86

basic-rule PE definition 3.15, 3.26, 3.34, 3.35, 3.94, 3.107, 3.115

business activity test 3.54, 3.107

contract manufacturing arrangement 3.17, 3.29

deletion of Art. 14 and fixed base concept 3.02–4

detailed instructions I.33, 3.87, 3.88, 3.89, 3.95

exclusions 3.52–71

existence of the place of business 3.06–18

general definition 3.05–34

place of business test 3.07–10, 3.68–9

place of business ‘through which’ an enterprise carries on its business 3.17–18, 3.28–34

place of business ‘through which’ an enterprise carries on its business, business connection test 3.17, 3.29, 3.34, 3.38

place of business ‘through which’ an enterprise carries on its business, gaming/vending machines and cables/pipelines 3.33–4

place of business ‘through which’ an enterprise carries on its business, leasing activities and delivery of spare parts 3.30–32, 3.95

place of management 3.37–40

place of management, minimal threshold 3.39–40

right of use of the premises or facilities, lack of 3.12

right of use test 3.07, 3.11–16

right of use test, agency-PE 3.15

right of use test, mere presence of enterprise 3.16

right of use test, multi-level analysis 3.15

‘substantial equipment’ clause 3.41–2

‘substantial equipment’ clause, chartered vessels 3.41

‘substantial equipment’ clause, golf clubs or other activities performed by a golf player, exclusion of 3.42

virtual technological facilities 3.09–10

permanent establishment definition, building sites 3.43–51

building site or construction/installation project 3.44

preparatory works, interruptions and time spent by sub-contractors 3.49–51

preparatory works, interruptions and time spent by sub-contractors, starting date for projects 3.50

twelve-month test 3.45–8

twelve-month test, aggregate approach 3.47–8

permanent establishment definition, dependent agents (agency-PE) I.39, 3.72–86

authority to conclude contracts in the name of the enterprise 3.74–86

authority to conclude contracts in the name of the enterprise, habitual authority 3.76

commissionaire structures 3.83–6, 4.04

definition 3.73

participation in negotiations 3.78–82

restrictive approach by tax authorities 3.81–2

right of use test 3.15

permanent establishment definition, exceptions for preparatory or auxiliary activities 3.52–6, 3.63–9

activities ‘remote’ from actual realization of profits 3.54, 3.64

attraction approach 3.56

combinations of preparatory or auxiliary activities 3.70–71

financial advisory and securities underwriting services 3.54

information gathering 3.63, 3.67

managerial activities 3.65–6, 3.104, 3.108–10

money transfers 3.53

place of business test 3.68–9

preparatory activities as belonging to the core business 3.55, 3.63

purchase function 3.61–2

residual clause 3.52, 3.64

restrictive judicial trend 3.55, 3.59–60

storage space 3.58–60, 3.71, 3.73

permanent establishment definition, ‘fixed’ place of business 3.19–27

activities based on revolving locations 3.23–4

commercial and geographic coherence for mobile activities 3.22–3

drilling ships 3.20, 3.25

duration test 3.25–7

duration test, activities of a recurrent nature 3.26

duration test, intensity of effective presence 3.27

duration test, travelling salesman 3.26

location test 3.20–21

spatial delimitation approach 3.20–21

vessels and spatial delimitation approach 3.21

permanent establishment definition, independent agents 3.87–94

activities belonging to agent’s economic sphere 3.98–102

agent acting in ordinary course of his business 3.97–103

arm’s length relationships 3.94

employee recruitment 3.92

entrepreneurial risk 3.87, 3.95

helicopter leasing 3.93, 3.102

independence requirements 3.95, 3.103

insurance industry 3.89–91, 3.94, 3.96

legal and economic independence 3.89–96

number of principals as indicator of independence 3.103

permanent establishment definition, subsidiary clause 3.95–118

basic-rule subsidiary PE 3.107

inheritance tax on shares 3.105

multinational groups and intra-group services 3.113–18

securities trading 3.111

service-PE 3.114–18

sub-agency-PE 3.111–12, 3.113–18

sub-material-PE 3.107–10, 3.113–18

subsidiaries as independent legal entities 3.104–5

permanent home

in both CSs 2.37–43

definition 2.29–36

only in one country 2.27–36

see also residence

personal allowances comparability, nationality non-discrimination clause 13.56–8

personal costs deduction, income from immovable property 5.06

personal services

income 4.93–7, 11.18–34

independent, nationality non-discrimination clause 13.25

persons covered by Convention (Art. 1) 1.01–124

anti-abuse rules 1.39–60

beneficial owner concept 1.61–124

beneficial owner of income of an entertainer/sportsperson 1.124

bona fide safeguard clauses 1.48, 1.49–51, 1.82

channel approach to counteract ‘stepping-stone’ schemes 1.48, 1.100, 1.111

conduit companies 1.32, 1.40, 1.63, 1.66, 1.68, 1.100

conflicts of allocation of taxing rights 1.21–4

dividend distributions by partnerships where SC treats partnership in SC as a company 1.13–14

‘double benefits’ situations 1.26

entity requirements 1.03–6

immovable property income 1.24

interest, and bona fide safeguard clauses 1.51

limitation-of-benefits (LOB) approach I.20, 1.52

look-through approach 1.42–5

multi-test clause (LOB clause) and treaty shopping prevention 1.52

partnership chains 1.07–8, 1.119, 5.59

partnership entitled to treaty benefits as a person 1.19

partnership treated as a company resident 1.11–12

partnerships 1.09–29

‘person’ definition 1.01–2

royalties cases 1.47

subject-to-tax approach 1.46–7, 1.80, 1.116

tax-transparent partnerships 1.15–20, 1.27–8

Treaty entitlement for partnerships 1.10–20

treaty shopping prevention 1.45, 1.52

triangular cases 1.25–9

trusts, and persons as entities 1.06–7

persons covered by Convention, beneficial owner of capital gains and selling of shares 1.119–23

anti-abuse rules 1.122–3

legal form of sale transactions 1.121

look-through approach 1.119–20

persons covered by Convention, beneficial owner of dividends I.49, 1.47, 1.51, 1.62–89

abuse of reduced treaty withholding taxes for outbound dividends 1.77–89

abuse regarding domiciliary companies 1.78–9

context-related situations of abuse 1.83

direct recipient of dividends not deemed to also be beneficial owner 1.75–6

direct recipient of dividends within structure of a group as active holding 1.89

dividend coupons 1.74

‘indirect ownership’ terminology 1.88

intermediary entities as actual beneficial owners 1.71–3

multiple intermediary companies structure 1.87–8

non-active companies, abusive structure 1.82

parent-subsidiary structures and abuse of EU Parent-Subsidiary Directive 1.84–5

resident of CS acting in capacity of agent or nominee 1.65

resident of CS acting as ‘conduit’ for another person 1.66–70

total return swaps 1.72–3

undistributed profits, accumulated 1.80–81

see also income from equity and from debt, dividends

persons covered by Convention, beneficial owner of interest 1.90–108

back-to-back loan 1.101–2

consortium loans 1.96–7

economic or ‘substance over form’ approach 1.97

interest received by beneficial owner and lack of conduit structures 1.94–8

interest received by conduit which is not a beneficial owner 1.99–108

intermediary branch 1.98

intermediary company and substance over form doctrine 1.105–6

loan agreement arbitration clause 1.108

pass-through using deduction of group contributions provided for by domestic laws 1.99–100

private equity financing structure 1.103–4

revolving and converted loans 1.94–5

step transaction doctrine 1.107

see also income from equity and from debt, interest

persons covered by Convention, beneficial owner of royalties 1.109–18

collection or handling fee instead of royalties 1.113

contextual legal arrangements 1.117

and lack of conduit structures 1.110–15

legal form of sale transactions 1.118

royalties received by a conduit which is not a beneficial owner 1.116–18

see also royalties

persons covered by Convention, Collective Investment Vehicles (CIVs) I.20, 1.30–38

equivalent beneficiaries 1.33

expressly entitled to treaty benefits 1.32

investors residents of CIV’s CS 1.34

look-through approach, benefits of investors maintained 1.35–7

publicly traded 1.38

Treaty eligibility 1.30

persons covered by Convention, preferential tax regimes

ad hoc exclusion approach 1.55

anti-abuse rules dealing with source taxation of specific types of income 1.58

entities benefiting from 1.54–6

introduced after signature of treaty 1.59

preferential tax regime approach 1.56

remittance based taxation introduced by resident non-domiciled provision 1.60

pipelines see cables/pipelines

place of business test see under permanent establishment definition

place of management

concept 2.07

permanent establishment definition 3.37–40

‘place of effective management’ concept 2.08–9

political subdivisions 1.02, 1.126, 6.59, 13.121

exchange of information 15.08, 15.99

government service 10.05, 10.43, 10.63, 10.65–7, 10.76, 10.83, 10.88–90

residence for treaty purposes 2.02, 2.15

portability of pension rights, tax obstacles 10.59–62

preferential tax regimes

dividends 6.07

interest 6.60

pensions 10.46–7

persons covered see persons covered by Convention, preferential tax regimes

preparatory activities, permanent establishments see permanent establishment definition, exceptions for preparatory or auxiliary activities

price, arm’s length price, associated enterprises 4.140–64

price, transactions or VAT input tax credits 15.18

see also exchange of information and assistance in collection

principle of hearing both sides 15.40

see also exchange of information and assistance in collection

principle of progression, double taxation elimination methods 12.71–4, 12.109–10

private equity financing structure, beneficial owner of interest 1.103–4

private services, pensions for combined private and government services 10.84–7

privilege against self-incrimination rule 15.65

see also exchange of information and assistance in collection

pro rata, maximum deduction, pro rata rule, double taxation elimination methods 12.101–3

profits

activities ‘remote’ from actual realization of profits 3.54, 3.64

business see business profits and associated enterprises

calculation and taxation, right to apply standard method 13.52

derived from alienation of property 1.138

determination, administrative practices 13.70

dividend distributions partnerships 6.11–12

dividends, participating loans and hybrid financial instruments 6.20–26

from the participation in joint activities 11.84

hidden 6.31–4, 11.17, 11.41

prohibition of extra-territorial taxation, by source country of profits 6.36–50

undistributed profits, accumulated 1.80–81

promissory notes, undeveloped real property 5.09

property, immovable see immovable property

protected trade or business secrets 15.69–70

public bodies, differentiated treatments 13.19–20

public court proceedings, exchange of information 15.41

public order, violation, exchange of information and assistance in collection 15.66–72

Puncher, Ethel 3.84

qualification problems, directors’ fees 8.52, 8.57–8

real estate companies, shares in 5.54–6

Real Estate Investment Trusts (REITs) 5.20, 5.56, 6.09

recapture rules and deduction of final losses, foreign exempt income 4.118

reciprocity issues, exchange of information and assistance in collection 15.36–7, 15.52–4

reciprocity provision, lack of, non-discrimination 13.14–16

redemption

annuity 11.10

pensions rights 10.10, 10.13–15

securities 5.72–4, 6.27

refund of withholding tax, nationality non-discrimination clause 13.52

rehearsal and training, entertainers and sportspersons 9.38

remuneration see salaries/wages

rents of films, royalties 7.32–4

renvoi method I.59–61, I.86, 5.75, 6.16

research centres or laboratories, students and allocation rule 8.63

research grants, students and allocation rule 8.61

residence

discrimination based on 13.06–10, 13.28

interplay of nationality/residence, nationality non-discrimination clause 13.30–37

permanent home see permanent home

residence-source, double taxation elimination methods see double taxation elimination methods, residence-source

transfer of residence of the recipient of pensions 10.21–6

transfer, retroactivity of domestic exit taxes levied on I.58

residence for treaty purposes (Art. 4) 2.01–70

Certificate of Residency evidence 2.10, 2.21

double taxation avoidance 2.11

fiscally transparent partnerships 2.14

persons who are not residents for Convention purposes 2.13–14

‘place of effective management’ concept 2.08–9

‘place of management’ concept 2.07

resident definition 2.02

resident liable to tax in the RC only on domestic income 2.16–17

resident liable to tax in the on worldwide income 2.02–15

state inclusion, and any political subdivision or local authority 2.02, 2.15

taxpayer effectively liable to tax 2.03–4

taxpayer is ‘subject to tax’ under domestic laws 2.11

territorial principle 2.17

residence for treaty purposes, tie-break rules for companies 2.53–70

company residence proof 2.56

dual resident companies 2.58

legal entity resident of one CS based on its domestic laws 2.53–7

principal shareholder influence 2.55

residence for treaty purposes, tie-break rules for companies, effective place of management concept 2.59–70

factual analysis 2.61

individual managers or directors, determination role 2.62–3

‘management and control’ concepts 2.65–9

MAP case-by-case approach 2.70

resident shareholders, company management involvement 2.64

trust shares and capital gains 2.66–9

residence for treaty purposes, tie-break rules for individuals 2.18–52

actual position but regardless of marital status 2.23

domestic concept of ‘ordinarily resident’ 2.20

‘domicile’ concept and ‘main centre of business and interests’ 2.24

dual residence based on the domestic laws of CSs 2.18

dual resident individuals 2.25–6

habitual abode test 2.47–9

habitual abode test, negative centre of vital interests test 2.48–9

individual resident of one CS on basis of its domestic laws 2.19–24

MAP test 2.52

nationality test 2.50–51

permanent home definition 2.29–36

permanent home only in one country 2.27–36

structure of tie-break rules for individuals 2.27–52

residence for treaty purposes, tie-break rules for individuals, centre of vital interests test 2.37–46

analysis to balance economic and the personal ties 2.42

conduct of life analysis 2.39

family ties closely connected to cultural/social factors 2.40–42

habitual abode test, negative centre of vital interests test 2.48–9

permanent home in both CSs 2.37–43

permanent home and habitual abode in one CS (modified centre of vital interests test) 2.44–6

place of business factor 2.43

residual clause, permanent establishment definition 3.52, 3.64

residual taxation in the SC, international transport 11.66–9

restrictive approach

by tax authorities, dependent agents (agency-PE) 3.81–2

exchange of information must only pertain to the treaties 15.19

restrictive judicial trend 3.55, 3.59–60

retirement

individual retirement schemes and preferential tax treatment 10.46–7

and working-time account scheme 11.22

see also pensions

revenue-claim, assistance in collection see under exchange of information and assistance in collection, assistance in collection of taxes

reverse discrimination 13.11

see also non-discrimination

reversibility pensions 11.31

revolving and converted loans 1.94–5

see also loans

revolving locations, and ‘fixed’ place of business 3.23–4

right of use test, permanent establishment see under permanent establishment definition

‘roaming’ telecommunications agreements and spectrum licenses 7.31

royalties

arm’s length rule 4.160–64

beneficial owner of royalties see persons covered by Convention, beneficial owner of royalties

exchange of information and assistance in collection 15.17

force of attraction on outbound 4.69–70, 4.79–81

foreign royalties and creditability of withholding taxes 4.108–9

persons covered by Convention 1.47

separate taxation, limited force of attraction of the PE 4.54–60

third country, income sourced in 11.57, 11.58, 11.60

third country, non-discrimination clause 13.87–92

withholding tax on 12.89

royalties (Art. 12) 7.01–79

alienation of rights 7.23

allocation rule 7.01–14

arm’s length rule 7.79

beneficial owner of royalties 7.13

concurrent taxation in the RC 7.02–13

definition 7.15–77

double taxation avoidance 7.01

and entertainers and sportspersons 9.36

exclusive taxation in the RC 7.01

force of attraction on outbound royalties effectively connected to a PE 7.78

hybrid situations between use and transfer of rights 7.23

lease of TV programmes generating business profits 7.33

licence of TV programmes generating royalties 7.34

payments for the development of a design 7.36

payments for exclusive distribution rights 7.35

payments for intra-group services definition and technical assistance (know-how) 7.40–41

payments for know-how 7.22, 7.38–50, 7.65–6, 7.73

payments for know-how, know-how definition 7.39–42

payments for know-how, know-how versus provision of services 7.43–50

payments for leasing of equipment 7.25–7

payments made to lease or purchase the capacity of cables/pipelines 7.29

payments for mixed contracts 7.72–7

payments for mixed contracts, downloads leading to acquisition of copyright 7.77

payments for mixed contracts, downloads leading to acquisition of data 7.75–6

payments for mixed contracts, payments for digital products (images, sounds or text) 7.74–7

payments for the rent of films 7.32–4

payments for ‘satellite transponder leasing’ agreements 7.28–30

payments for telecommunications ‘roaming’ agreements and for spectrum licenses 7.31

payments that are business profits, not royalties 7.24–37, 7.43–50, 7.6–43, 7.67–71

payments for the use of rights and payments for the transfer of property, distinction between 7.16–23

scope 7.14

transfer of rights, criteria for 7.18–22

triangular cases 7.14

royalties, payments for computer software I.21, I.73, 7.37, 7.51–71, 7.73

copyright protection 7.53–60, 7.62–4, 7.75

as literary work 7.55–9

payments for limited rights to reproduce a program 7.68

payments for operational software 7.65–6

payments for right to distribute copies without the right to reproduce the program 7.70–71

payments for rights to make multiple copies of a program 7.69

software-related payments that are business profits 7.67–71

source codes 7.59

special category of copyright protection 7.60

royalties, withholding tax issues 7.04–12

exercise of the right to tax in the SC 7.04–5

intellectual property use 7.11–12

no withholding tax in the SC if PE of the non-resident recipient is located in the SC 7.07–12

refund of the withholding tax in the SC 7.06

S-corporations (US) 1.05, 6.12

salaries/wages 1.127, 11.19–21, 11.27

government service 10.64, 10.65, 10.76, 10.80, 10.81, 10.82, 10.88–9, 10.90

municipal tax on aggregate salaries 1.147–8

other income 11.19–21, 11.27

working/active partner income I.72, 4.76, 4.94, 8.55, 8.56, 8.57, 11.24–30, 14.36, 14.39–40

see also income from employment

‘same activities’ inclusion, non-discrimination clause 13.69

‘same circumstances’ comparable situation, nationality non-discrimination clause 13.38–40

same-sector business activities 13.67

satellite transponder leasing agreements, royalties 7.28–30

saving clause 5.40–41, 10.20, 13.18

secrecy rules and confidentiality 15.66–72

bank secrecy 15.53, 15.79–92

trade or business secrets 7.65, 15.69–70, 15.84, 15.85–6

see also exchange of information and assistance in collection

securities

characterization 5.63–4

redemption 5.72–4, 6.27

trading 3.111

underwriting services 3.54

self-employed persons, pensions 10.44

self-incrimination rule

privilege against 15.65

see also exchange of information and assistance in collection

sensitive information 15.14

see also exchange of information and assistance in collection

separate enterprise fiction see business profits and associated enterprises, attribution rule, separate enterprise fiction

separate taxation, business profits see business profits and associated enterprises, separate taxation

service-PE, permanent establishment definition, subsidiary clause 3.114–18

severance payments 8.09, 9.42, 11.19–20, 14.10, 14.37

shares

alienation, and capital gains 5.65–6, 5.71, 5.73

alienation, directors’ fees 8.54

alienation, double taxation elimination methods 12.42–3

beneficial owner of capital gains and selling of shares see persons covered by Convention, beneficial owner of capital gains and selling of shares

inheritance tax on 3.105

interest paid on a loan obtained to purchase shares of a foreign company 12.66

jouissance shares and hybrid financial instruments 6.20–26

and non-redeemable loan 11.36

and notional interest 11.11

notional yield of share investments 11.15

principal shareholder influence, residence for treaty purposes 2.55

in real estate companies 5.54–6

sales of shares of companies owning immovable property 5.26, 5.29–30, 5.31, 5.36, 5.42, 5.50–51, 5.54–6, 5.61

share loss deductions, nationality non-discrimination clause 13.41

see also stock options

shipping

allocation rule in international traffic 11.62–78

capital represented by 5.91

drilling ships, ‘fixed’ place of business 3.20, 3.25

effective place of management of an enterprise aboard a ship/boat 11.82–3

fishing activities 11.74

gains from alienation of ships 5.53

inland waterways, allocation rule for income from boats engaged in 11.79–81

international transport crews, income from employment 8.47–9

investment income related to shipping activities 11.76–8

leasing of ships fully equipped 11.75

ship-broker branch offices 11.67–9, 11.71–2

spatial delimitation approach 3.21

‘substantial equipment’ clause, chartered vessels 3.41

see also air transport; other income and international transport, international transport

silent partnerships

foreign interest arising from atypical silent partnership agreements 4.135–9

and hybrid financial instruments 6.20–26

interests of foreign entities in 4.66–8

see also partnerships

small companies, participations of active partners in 4.76

social responsibility, extraordinary social responsibility contribution 1.139–40, 1.149

social security benefits

cross-border issues 10.40–45

government service 10.43

pensions 10.05–6

and temporary unemployment 11.21

‘soft tax law’ implementation in domestic tax systems I.05

software see computer software

source-source, double taxation elimination methods 12.19

spare parts, delivery 3.30–32, 3.95

spatial delimitation approach, ‘fixed’ place of business 3.20–21

special rule for undistributed dividends of a CFC 6.47–50

spillover prevention, double taxation elimination methods 12.58

sponsorship

fees, entertainers and sportspersons 9.21, 9.22

payments not attributed to performances or appearances 4.97

spontaneous adjustments, business profits and associated enterprises 4.39–43

spontaneous exchange of information 15.11, 15.22

sportspersons see entertainers and sportspersons

stage décor painter, exclusion of, entertainers and sportspersons 9.14

stage managers or directors, exclusion of, entertainers and sportspersons 9.12–13, 9.15–17

stateless persons, non-discrimination clause 13.61–3

step transaction doctrine, beneficial owner of interest 1.107

stepping-stone schemes, channel approach to counteract 1.48, 1.100, 1.111

stock options

indemnity, and limited partnership conversion to joint-stock company 11.29–30

taxable income from 10.18

see also shares

storage space 3.58–60, 3.71, 3.73

student loans, tax credit for interest on 13.41

student maintenance allowance 11.40

student scholarship stipend 11.34

students, income from see income from employment, directors’ fees, and students, students and allocation rule

subject-to-tax approach I.20

persons covered by 1.46–7, 1.80, 1.116

residency for treaty purposes 2.11

in the SC, double taxation elimination methods 12.61–2

subsidiary clause, permanent establishments see permanent establishment definition, subsidiary clause

subsidies, spillover or domestic tax subsidies of benefits prevention 12.58

substance-over-form approach

analysis, contract of service vs contract for service 8.32, 8.34–9

beneficial owner of interest 1.97, 1.105–6

hidden profit distributions 6.34

‘substantial equipment’ clause, permanent establishment definition 3.41–2

summons enforcements (US), and exchange of information 15.13, 15.21, 15.29–33, 15.58–60, 15.64

switch-over to credit for dividends and interest 12.69–70

tax avoidance

and 183-day rule 8.18

entertainers and sportspersons, income accrued to another person 9.79–80

renouncing citizenship for tax avoidance purposes (US) 5.40–41

see also abuse

tax credit

foreign see foreign tax credit (FTC)

for interest on student loans 13.41

tax fraud 15.16, 15.89–90

see also abuse

Tax Information Exchange Agreement (TIEA) 15.06–7

tax sparing provisions, double taxation elimination methods 6.77, 12.111–15

tax transparency network development, and exchange of information 15.06

tax-transparent partnerships 1.15–20, 1.27–8

taxes covered by treaties (Art. 2) 1.125–49

collective investment tax 1.144

corporate income tax 1.129, 1.135–6, 1.140, 4.32, 5.33, 6.18, 10.67, 11.69, 13.43, 13.46, 13.81

definition of taxes on income and on capital 1.127–44

extraordinary social responsibility contribution 1.139–40, 1.149

extraordinary taxes 1.137, 1.139–42

forfeit taxation of income from savings and investments 1.132, 1.148

income taxes 1.28–37

list 1.145

local business tax 1.134, 1.136

lottery prizes 1.133

municipal business taxes on payroll 1.129

municipal tax on aggregate salaries 1.147–8

net wealth tax 1.130–31, 1.148, 5.78, 5.79, 5.83, 5.93, 13.121

new taxes 1.146–9

profits and gains derived from alienation of property 1.138

scope 1.125–6

tax on termination of a private pension 1.149

taxes on capital 1.143–4

windfall tax 1.141–2

teams, troupes, orchestras, entertainers and sportspersons, income accrued to another person 9.56, 9.57–9, 9.71

technical assistance, payments for intra-group 7.40–41

technical services, fees for 11.45–8

technology, virtual technological facilities 3.09–10

telecommunications ‘roaming’ agreements and for spectrum licenses 7.31

territorial principle, residence for treaty purposes 2.17

testimony, exchange of information and assistance in collection 15.25

thin cap rules

deduction non-discrimination clause 13.94–100

and distinction between dividends and interest 6.65

interest deduction, nationality non-discrimination clause 13.50–51

interest on loans 6.25–6

and transfer price 4.158–9

third countries

dividends, interest and royalties received from 13.87–92

double taxation elimination methods 12.10–18

exchange of information and assistance in collection 15.18, 15.42

income source see other income and international transport, other income, income sourced in third countries

interest borne by a PE in a third country and received by a resident of the RC 6.79–83

tie-break rules

for companies see residence for treaty purposes, tie-break rules for companies

for individuals see residence for treaty purposes, tie-break rules for individuals

time restrictions

dividends, time participation requirements 6.08

presentation of objections, mutual agreements procedure (MAP) 14.13

procedure if a mutual agreement is not reached within two years 14.46

request for arbitration 14.51

time-limits and priority for revenue claims 15.112–13

withholding tax time limits, mutual agreements procedure (MAP) 14.13

total return swaps, beneficial owner of dividends 1.72–3

trade or business secrets 7.65, 15.69–70, 15.84, 15.85–6

see also secrecy rules and confidentiality

training, entertainers and sportspersons 9.38

transfer of assets, tax neutral 13.53

transfer of losses, non-discrimination clause 13.74, 13.76–7

transfer price, and thin cap rules 4.158–9

Transfer Price Report 4.141–51

transfer of property, payments for the use of rights and payments for the transfer of property, distinction between 7.16–23

transfer of residence of the recipient of pensions 10.21–6

transfer of rights, criteria for, and royalties 7.18–22

transparency, tax transparency network development 15.06

transplant resistance I.43–4

transponder (satellite) leasing agreements 7.28–30

travelling salesman, duration test, and ‘fixed’ place of business 3.26

treaty shopping prevention 1.45, 1.52

triangular cases

double dip of double taxation relief 13.92

interest 6.62

persons covered by Convention 1.25–9

royalties 7.14

third country involvement and exchange of information 15.18

trusts

disposition of a life income interest in 5.64

and persons as entities 1.06–7

trust shares and capital gains 2.66–9

TV see broadcasting

UN Model Double Taxation Convention between Developed and Developing Countries I.06

undeveloped real property and promissory notes 5.09

see also income from immovable property, capital gains, and capital, income from immovable property

undistributed profits, accumulated 1.80–81

unemployment

compensation 4.94

temporary 11.21

unresolved issues 14.47–9, 14.52

see also mutual agreements procedure (MAP), arbitration

use of rights, payments for, and royalties 7.16–23

VAT, price for VAT input tax credits 15.18

see also exchange of information and assistance in collection

Vienna Convention on the Law of Treaties (VCLT) I.52–5, I.64–9, I.76–7, I.79, I.81, I.82, I.84–7, 2.11, 4.06

violations

arbitration not available for cases of ‘potential violation’ 14.54

of domestic laws or administrative practices, and exchange of information 15.51–65

of secrecy rules or public order, and exchange of information 15.66–72

see also abuse

virtual technological facilities 3.09–10

vital interests of the State, and exchange of information 15.72

wages see salaries/wages

windfall tax (UK) 1.141–2, 12.82–3

withholding tax

and dividends 6.06–15, 6.30, 6.33

dividends, double taxation elimination methods 12.96, 12.103

and interest 6.56, 6.58–62, 6.81

issues, royalties see royalties, withholding tax issues

and non-discrimination, nationality non-discrimination clause 13.45, 13.54

on outbound dividends, non-discrimination clause 13.82, 13.113–15

reduced treaty withholding tax on outbound dividends 6.06–9, 6.13–15, 6.18

reduced treaty withholding taxes for outbound dividends, abuse of 1.77–89

refund, nationality non-discrimination clause 13.52

royalties, double taxation elimination methods 12.89

royalties, foreign royalties and creditability of withholding taxes 4.108–9

time limits, mutual agreements procedure (MAP) 14.13

working partner I.72, 4.76, 4.94, 8.55, 11.24, 11.25, 14.36, 14.39–40

working-time account scheme, and retirement 11.22

see also pensions; retirement

working/active partner income I.72, 4.76, 4.94, 8.55, 8.56, 8.57, 11.24–30, 14.36, 14.39–40