Fundamentals of
International Taxation -
Summary for the
preparation of the Exam
✓
,lnitialquestionsforeoerycase.nl
subjective objective and scope fulfilled?
2) who is
being taxed
?
3) what ?
ground
on
4) in what amount ?
Dtctosolveloubkltaxation
-
DTCs restrict the application of domestic law in a bilateral context
tlierarchyotDTCanddomestic.la#
domestic constitutional law ( DTCandconstitutionallaw are )
depends on
treaty overrideexists where at one level
-
if Treaty provides taxation possibility not
purpose and intention of to TPa
new
Treaty
→
a
give disadvantage
-
-
DTCprovides definition a domestic law → DTCprevails
provision overlap usually DTC States which provision is to be applied→ifnot:States must
agree upon this matter
-
:
Avoidance of Double (
non1 Taxation
→
goals
:
Prevention of abusive behaviour
ASK.jectiveandobjectivescope-AA.ie#
A .
2 .
3 .
AA.nth-snbjectives.co#
persons who are residents ofone or both CS
-
-
,
a)PersonAA.3l
→
Commentary on AA 3
.
para -
2
1 because of domestic treatment either as
partnerships person
=
,
I ) other
body ofperson transparent)
I
company opaque
or
aalpah-nershipsAA.tl# →see AA 1127.
para 2 It .
.
Commentary
applicable if one or both CS considerthe partnership as liable to tax under their domestic lawand therefore
-
as Residents →
see
para .
5
"
through that entity regardless ofthe view
"
income derived has broad 2
through orby meaning any income derived
-
a
,
of each Cs as to who derives that income for domestic purposes → see
para -
t
, doesn't matter where
entity is established can also bein a third state as
long as the income ofthe entity can be
-
,
attributedto a Resident otoneotthecs-sseepara.tt
income
→ →
see .8
para
by chapterII
all items of income covered
wide
meaning covering
-
,
fiscallgtransparent-seepara.CH
→
.
under domestic law of acs, the income is not taxed on the level ofthe
entity but on the person level, who have an interest
-
-
,
in that
entity
→
examples
A- sees as opaque
staxciab.CH
opaque
-
-
-
both countriessee it _A -
opaque
g- B sees as transp .
and allocates income to person -
level .z
person is
§ B'
usiaentaionu'T hits "'
n'
only B
opaqeacsanopfaq.ee
a -
Nsp .
ii
¥eB A- sees as opaque Reliability f) trsp .
① B sees as transp .
I
a
-
"
t)
Double Non Taxation
b lsaringsdause-A .rs#b)Resident-sA .4-se para.2H .
providing a definition
-
not ofa Resident
→
domestic law of CS decides about is therein based on one of the factors in 4th
Residency if Residency
→
aalliable.to#
not if
only liable to taxon source income para 8. n
-
.
no't held taxon 8.2
if foreign company exempt from
is
foreign income para
-
-
.
,
not, if person is considered to be Resident of another CSpursuant to a DTC 8.Losee horizontalelectof DTG
para
-
-
AAA -4117 sent 2- included
aggressive tax planning of companies
-
'
forexclusion ofdiplomats; but extendeddue to to
tax
source income
liability
- - -
generaldefinition
→
no
POnodetinitionwithinthe.DK?-3AA.312)MTCtpara -
Mff .
)
agreement of competent authorities ?
-
12
Para
does the context require otherwise ?
-
-
-
domestic lawfasiastaegop ,
④whatisthe.com#t?-
→
see AA -31 of the Vienna contract
)
also OECD
good faith ordinary meaning
context,
object and purpose preambles, contracts attachments
'
, , , ,
international understanding understanding of other countries historicalbackground commentary but
°
,
, ,
not
speeches,juridicaldecisions ,
explanatory notes ,
academic opinions binding a
@whendoestheconlextreguireotherwise2.t
'
if applying domestic meaning would be
contrary
to the intention of the parties of a DTC
International Taxation -
Summary for the
preparation of the Exam
✓
,lnitialquestionsforeoerycase.nl
subjective objective and scope fulfilled?
2) who is
being taxed
?
3) what ?
ground
on
4) in what amount ?
Dtctosolveloubkltaxation
-
DTCs restrict the application of domestic law in a bilateral context
tlierarchyotDTCanddomestic.la#
domestic constitutional law ( DTCandconstitutionallaw are )
depends on
treaty overrideexists where at one level
-
if Treaty provides taxation possibility not
purpose and intention of to TPa
new
Treaty
→
a
give disadvantage
-
-
DTCprovides definition a domestic law → DTCprevails
provision overlap usually DTC States which provision is to be applied→ifnot:States must
agree upon this matter
-
:
Avoidance of Double (
non1 Taxation
→
goals
:
Prevention of abusive behaviour
ASK.jectiveandobjectivescope-AA.ie#
A .
2 .
3 .
AA.nth-snbjectives.co#
persons who are residents ofone or both CS
-
-
,
a)PersonAA.3l
→
Commentary on AA 3
.
para -
2
1 because of domestic treatment either as
partnerships person
=
,
I ) other
body ofperson transparent)
I
company opaque
or
aalpah-nershipsAA.tl# →see AA 1127.
para 2 It .
.
Commentary
applicable if one or both CS considerthe partnership as liable to tax under their domestic lawand therefore
-
as Residents →
see
para .
5
"
through that entity regardless ofthe view
"
income derived has broad 2
through orby meaning any income derived
-
a
,
of each Cs as to who derives that income for domestic purposes → see
para -
t
, doesn't matter where
entity is established can also bein a third state as
long as the income ofthe entity can be
-
,
attributedto a Resident otoneotthecs-sseepara.tt
income
→ →
see .8
para
by chapterII
all items of income covered
wide
meaning covering
-
,
fiscallgtransparent-seepara.CH
→
.
under domestic law of acs, the income is not taxed on the level ofthe
entity but on the person level, who have an interest
-
-
,
in that
entity
→
examples
A- sees as opaque
staxciab.CH
opaque
-
-
-
both countriessee it _A -
opaque
g- B sees as transp .
and allocates income to person -
level .z
person is
§ B'
usiaentaionu'T hits "'
n'
only B
opaqeacsanopfaq.ee
a -
Nsp .
ii
¥eB A- sees as opaque Reliability f) trsp .
① B sees as transp .
I
a
-
"
t)
Double Non Taxation
b lsaringsdause-A .rs#b)Resident-sA .4-se para.2H .
providing a definition
-
not ofa Resident
→
domestic law of CS decides about is therein based on one of the factors in 4th
Residency if Residency
→
aalliable.to#
not if
only liable to taxon source income para 8. n
-
.
no't held taxon 8.2
if foreign company exempt from
is
foreign income para
-
-
.
,
not, if person is considered to be Resident of another CSpursuant to a DTC 8.Losee horizontalelectof DTG
para
-
-
AAA -4117 sent 2- included
aggressive tax planning of companies
-
'
forexclusion ofdiplomats; but extendeddue to to
tax
source income
liability
- - -
generaldefinition
→
no
POnodetinitionwithinthe.DK?-3AA.312)MTCtpara -
Mff .
)
agreement of competent authorities ?
-
12
Para
does the context require otherwise ?
-
-
-
domestic lawfasiastaegop ,
④whatisthe.com#t?-
→
see AA -31 of the Vienna contract
)
also OECD
good faith ordinary meaning
context,
object and purpose preambles, contracts attachments
'
, , , ,
international understanding understanding of other countries historicalbackground commentary but
°
,
, ,
not
speeches,juridicaldecisions ,
explanatory notes ,
academic opinions binding a
@whendoestheconlextreguireotherwise2.t
'
if applying domestic meaning would be
contrary
to the intention of the parties of a DTC
