This is the ninth edition of the condensed version of the publication entitled model tax convention on income and on capital, first published in 1992 and periodically updated since then. The application of the convention to partnerships, trusts. For example, what activities and entities fall within article 14 as opposed to the business profits article article 7. Part i of this article examines some of the basic operative assumptions of tax treaties. Model tax convention on income and on capital this publication is the seventh edition of the condensed version of the oecd model tax convention on income and on capital. United states model income tax convention of september 20, 1996. This publication is the tenth edition of the full version of the oecd model tax convention on income and on capital. The oecd also has promulgated model convention on the exchange of information in tax matters, estate taxation, and on other taxrelated subjects. Oecd ilibrary draft double taxation convention on income. World tax journal october 2014 205 e origins of article 55 and 56 of the oecd model disclosure seeks to protect the third parties interest in knowing who his contractual partner will be. United states model technical explanation of november 15.
The 2017 oecd model provides the basis for negotiation and. Oecd ilibrary issues related to article 14 of the oecd. For the purposes of this convention, the term resident of a contracting state means any person who, under the laws of that state, is liable to tax therein by reason of his domicile, residence, citizenship, place of management, place of incorporation, or any other criterion of a. Rules for a global world by providing evidence on regulatory cooperation in four sectors. The 2014 update of the oecd model tax convention and.
Application of the oecd model tax convention to partnerships, 1 the conclusions of which have been incorporated below and in the commentary on various other provisions of the model tax convention. Model tax convention on income and on capital 2017 full. Before 1995, the model did not explicitly state this. Oecd publishes 2014 update to model tax convention tax news. If the place of management, ie where the companies transactions are concluded, is outside of the uk, then no uk corporation tax is payable. Oecd issued, on 11 july 2017, the draft contents of the 2017 update of its model tax convention and asked for comments on a limited number of issues, namely changes to paragraph of the commentary on article 4 related to the issue whether a house rented to an unrelated person can be considered to be a permanent home available to the landlord for purposes of the tiebreaker rule in. The oecd model is a common reference point for countries engaged in treaty negotiations. More than 3,000 double tax agreements exist worldwide, and at least 7080 % of them follow the oecd model. Oecd model tax convention 2017 update blogs tax news. The convention and its commentary is generally used to interpret the provision of. Update to the oblivion game guide download pdf model tax convention. Download current version in pdf format from the oecd ilibrary. Oecd council approves 2017 update to oecd model tax. This shorter version contains the articles and commentaries of the model tax convention on income and capital as it read on 21 november 2017, but without the historical notes and the background reports that are included in the full version.
Double taxation conventions and international tax law. Income derived by a resident of a contracting state from immovable property including income from agriculture or forestry situated in the other contracting state may be taxed in that other state. This full version contains the full text of the model tax convention as it read on 21 november 2017, including the articles, commentaries, nonmember economies positions, the recommendation of the oecd council, the historical notes and the background reports. Oecd model tax convention on income and on capital july. The 2017 pdate primarily comprises changes to the oecd model tax convention u the oecd model that were approved as part of the beps packageor were foreseen as part of the follow up work on the treatyrelated beps measures. This closely follows the oecd model tax convention on income and on capital 2010, article 5.
An accord reached between member states of the organization for economic cooperation and development oecd that serves as a guideline for establishing tax agreements. United states model income tax convention of november 15. Double tax treaties also help to encourage cross border trade. United states model income tax convention 1981 with earlier drafts in 1976 and 1977 ii. This condensed version includes the text of the model tax convention as it read on 15 july 2014 after the adoption of the ninth update by the council of the oecd. Negotiations also took into account the model tax convention on income and on capital, published by the organisation for economic cooperation and development the oecd model. This book recommends that article 14 be eliminated from the oecd model tax convention and describes the changes that would need to be made to the articles and commentary of the model as a consequence. See ey global tax alert, oecd releases draft changes to be incorporated in 2017 update to oecd model tax convention, dated 28 july 2017.
In fact, the work on a first model convention was commenced in 1921 by the league of nations and led to the drawing up in 1928 of the first model bilateral convention and, finally, to the model conventions of mexico 1943 and london. Printed at the united nations, new york 1223972march 20122,715 usd 45 isbn 9789211591026 united nations model double taxation convention. The oecd model tax convention universitetet i oslo. This commentary was substantially amended in the 2000 version following the first report of a working party set up by the cfa in 1993 to study the application of the convention to partnerships. Oecd updates model tax convention the organisation for economic cooperation and development oecd on december 18 released a revised version of its model income tax convention the 2017 oecd model. Oecd model tax convention on income and on capital convention between state a and state b with respect to taxes on income and on capital preamble to the convention chapter i scope of the convention article 1 persons covered this convention shall apply to persons who are residents of one or both of the contracting states. See ey global tax alert, oecd releases final reports on beps action plan, dated on 6 october 2015. Charts, overviews and significant case studies complete the comprehensive explanations on the mechanics of the oecd model and the articles thereof, and make it to a must have for studying the subject. This publication is the tenth edition of the condensed version of the oecd model tax convention on income and on capital. This shorter version contains the full text of the model tax convention as it read on 17 july 2008, but without the historical. The 2014 update was already approved by the committee on fiscal affairs on 26 june 2014.
T he oecd council approved the 2014 update to the oecd model tax convention the 2014 update on 15 july 2014. Oecd ilibrary model tax convention on income and on. As discussed in that report, a main source of difficulties is the fact that some. Oecd model tax convention on income and on capital july 2010 incl commentary download pdf 470 pages oecd model tax convention on income and on capital july 2010 incl commentary. See ey global tax alert, oecd council adopts 2014 update to the model tax convention, dated on 22 july 2014. A special tax regime provides preferential tax treatment usually in. The 2017 oecd model makes significant changes to many of the operative rules that will impact the availability and scope of treaty benefits for taxpayers resident in countries that enter into revisions to existing treaties or negotiate new treaties based on the oecd model provisions. Model income tax convention 7 article 4 resident 1. The four case studies follow the same outline to allow for comparison. United states estate, inheritance, and gift tax convention 1980, the franceunited kingdom estate tax convention 1963 and dtas that address acombination of double taxation of income and inheritance taxes, e.
Double taxation is the taxation of a single taxpayer with respect to the same subject matter over the same period in more than one country. This article first provides a brief historical background to art. Model convention and commentary the ninth edition in 2014 which can be found here. Article 17 of the oecd model tax convention oecd recommendations some of the suggested restrictions are contained in paragraph 2 of the commentary on article 17 of the oecd model tax convention 2014. Model tax convention on income and on capital 2017 full version this publication is the tenth edition of the full version of the oecd model tax convention on income and on capital. Oecd the new article 7 of the oecd model tax convention. Oecd releases 2017 update to the model tax convention. Publication date 1987 related work oecd model income tax treaties and commentaries. The united nations model convention generally favours reten tion of greater so called source country taxing rights under a tax treatythe taxation rights of the host country of investment. The oecd model convention and the related commentary has an established history. The oecd model tax convention contains a tie breaker clause that determines a companys tax residence for the purposes of.
It was meant to be an alternative to the oecd model taxation convention on income and capital oecd model which puts most. Oecd releases 2017 update to the model tax convention november 28, 2017 in brief the oecd has released the 2017 update to the model tax convention and the related model commentary, largely incorporating the changes approved as part of the base erosion and profit shifting beps package. June 1998 condensed version oecd committee on fiscal affairs on. Model income tax convention on february 17, 2016 2016 model treaty that, among other things, implements new provisions to address special tax regime issues and prevent situations of double nontaxation. Related work baker, philip, 1955 double taxation conventions and international tax law. The full version of the oecd model tax convention is. This important chapter covers fundamental taxation recommendations. The convention consists of articles, commentaries, position statements and special reports on evolving tax issues. The oecd model convention provides a basis that can be used to draw up a bilateral tax agreement between two states, that seeks to eliminate double taxation. Oecd model convention commentary pdf application of the oecd model tax convention to oca pdf download partnerships, 1 the conclusions of which have been incorporated below and in the commentary on various. Oecd model tax convention 10 oecd chapter iii taxation of income article 6 income from immovable property 1. Issues related to article 14 of the oecd model tax convention the taxation of professional services and other activities of an independent character under article 14 of the oecd model tax convention is problematic. The oecd model tax convention explaining the oecds legitimation strategies and why states adhere to the principle of exclusive rights to tax royalties in the state of residence guro klausen master thesis department of political science faculty of social sciences university of oslo may 2014. The main objective of the model tax treaties is to avoid simultaneous taxation in both countries under their domestic tax laws.
This full version contains the full text of the model tax convention as it read on 21 november 2017, including the articles, commentaries. This book is by far the best book on the oecd model tax convention 2010. Issues related to article 14 of the oecd model tax convention. Draft double taxation convention on income and capital 1963 this 1963 report presents the articles on the avoidance of double taxation on income and capital, as agreed upon by the fiscal committee. Model, and on changes resulting from the other beps action items. This volume complements the stocktaking report on international regulatory cooperation.
Model bilateral tax treaties international and foreign. The 2014 update mainly reflects the work that was carried out by the oecd between 2010 and 20. General scope sets forth general rules relating to applicability of certain articles and other agreements. These are the main purposes of the oecd model tax convention on income and on capital, which provides a means of settling on a uniform basis the most common problems that arise in the field of international juridical double taxation. Consult the tax research platforms described below to locate the texts of other oecd model treaties. However, it also agreed to have an alternative set of provisions and commentary for those wanting to follow a similar course to that of the oecd model convention, in which case, some similar definitionswouldbelikely.
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