The oecd model tax convention explaining the oecd s 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 oecd model tax convention universitetet i oslo. The 2010 update to the model tax convention 22 july 2010. The fulllength version of the oecd model tax convention is produced in a two.
Oecd model tax convention on income and on capital 2010 oecd commentary. Contracting states, more recent conventions usually apply to residents of one or. An accord reached between member states of the organization for economic cooperation and development oecd that serves as a guideline for establishing tax agreements. This full version contains the full text of the model tax convention on. In july 2008, the oecd model tax convention began including a mandatory arbitration provision for taxpayers failing to reach agreement under map. The oecd model tax convention on income and on capital is referred to in the commentaries on the articles as the oecd model convention, and references are to the 2010 version of. The 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. The 2014 update was approved by the oecd council on 15 july 2014 and had been approved by the oecds committee on fiscal affairs on 26 june 2014. The oecd model tax convention provides the basis for the negotiation and.
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. On november 21, 2017, the oecd council approved revisions to the oecd model income tax convention the oecd model, together will revisions to the accompanying commentaries. The standard provides for information exchange on request, where the information is foreseeably relevant for the administration of the taxes of the requesting party, regardless of bank secrecy and a domestic tax interest. 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. Oecd model tax convention on income and on capital. Model tax convention on income and on capital model tax convention on income and on capital. On july 15 th 2014, the oecd published its 2014 update of the model tax convention 2014 oecd update. Bombay chartered accountants society bcas knowledge resource update title.
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. Departures from the oecd model and commentaries ibfd. This states that too strict provisions could, in certain circumstances, prevent cultural exchanges. The full version of the oecd model contains the articles and. Model tax convention on income and on capitalcondensed version as it read on 21st november, 2017 model tax convention on income and on capital condensed version was released by oecd on 21st november 2017. Oecd today released a draft of the 2017 update to the oecd model tax convention, which is used by many countries as a basis to negotiate bilateral tax treaties the oecd said that many of the draft changes have already been approved as part of the oecdg20 base erosion profit shifting beps plan or have been previously released for comment. 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. On 29 april 201, the oecd released a public discussion draft entitled 1 of the meaning oclarification f beneficial owner in the oecd model tax convention. Model tax convention on income and on capital 2017 full. Klaus vogel, klaus vogel on double taxation conventions kluwer law international, 1997 421422. This book is by far the best book on the oecd model tax convention 2010.
United nations model double taxation convention between. Global forum on transparency and information exchange. Introduction all oecd member countries have given undertakings to ensure that their bilateral income tax treaties conform to the oecd model tax convention. Oecd releases 2017 update to the model tax convention. Title aspects covered salient featuresarticle 1 persons covered who can claim benefit of dtaa person who is a resident of either or both the contracting statesarticle 2 taxes covered outlines the range of taxes 1. The objective of the oecd model convention is the harmonisation of tax treaties concluded by oecd member states nb the fiscal committee of the organisation for economic cooperation and development oecd now comprises 32 members, including australia, austria, belgium, canada, chile, the czech republic, denmark, finland, france, germany. And related commentary should be considered as drafts. The model convention seeks, wherever possible, to specify for each situation a single rule. 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. This publication is the eighth edition of the full version of the oecd model tax convention on income and on capital.
Model, while beginning to shift towards including nonbinding arbitration in some of the later treaties, still relies on the voluntary map proceedings for resolution of disagreements. It does not however take into account the oecd conclusions of the action plan on base erosion and profit shifting beps. Dec 19, 2017 the oecd model tax convention, a model for countries concluding bilateral tax conventions, plays a crucial role in removing tax related barriers to cross border trade and investment. Oecd on december 18 released a revised version of its model income tax convention the 2017 oecd model. This shorter version contains the articles and commentaries of the model tax convention on income and capital as it read on 21 november. Sep 27, 2005 model tax convention on income and on capital model tax convention on income and on capital. Though not binding on any country, the 2017 oecd model provides a means for settling. Issues related to article 17 of the oecd model tax convention will be added. This publication is the tenth edition of the condensed version of the oecd model tax convention on income and on capital. Many of these treaties are based on the model tax convention of the organisation for economic cooperation and development oecd which, accompanied by the official commentary and the authors annotations, forms the framework for this work. Dec 15, 2015 article 54 of the oecd model tax convention 2014 contains a list of specific activity exceptions, according to which a pe may be deemed not to have been created. Commentaries on the articles of the model tax convention 4522 sep 2014. Model double taxation convention the united nations.
The 2010 update to the model tax convention the changes to the existing text of the model tax convention appear in strikethrough for deletions and bold italics for additions a. Jan 29, 2020 worldwide tax treaties model conventions the content of this lexis database is almost identical to the tax treaty database available on, but it also includes a handful model treaties issued by jurisdictions other than the u. The oecd model tax convention, a model for countries concluding bilateral tax conventions, plays a crucial role in removing tax related barriers to cross border trade and investment. Publication date 1987 related work oecd model income tax treaties and commentaries. Article 54 of the oecd model tax convention 2014 contains a list of specific activity exceptions, according to which a pe may be deemed not to have been created. 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.
The convention consists of articles, commentaries, position statements and special reports on evolving tax issues. This full version contains the full text of the model tax convention on income and on capital as it read on 22 july 2010, including the articles, commentaries, nonmember economies positions, the recommendation of the oecd council, the historical notes now expanded to go back. This convention shall not affect the taxation, by a contracting state, of its residents except with respect to the benefits granted under paragraph 3 of article 7, paragraph 2 of article 9 and articles 19, 20, 23 a b, 24, 25 and 28. This important chapter covers fundamental taxation recommendations. Beps action point 7 amendments to article 5 of the oecd.
Bin yang, a comparative study on the rules and administration of the international taxation system china tax publishing house, 2003. This full version contains the full text of the model tax convention on income and on capital as it read on 22. Model tax convention on income and on capital 2017. This publication is the tenth edition of the full version of the oecd model tax convention on income and on capital. Oecd ilibrary model tax convention on income and on capital. Tax revenue is defined as the revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes. The 2017 oecd model provides the basis for negotiation and application of bilateral tax treaties between countries to prevent tax evasion and avoidance. Oecd model tax convention on income and on capital extract. 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. It therefore fills a major gap in the international tax literature, which has so far either studied. The oecd publishes and updates a model tax convention that serves as a template for allocating taxation rights between countries.
The oecds tax information exchange agreements an example of. The full version of the oecd model tax convention is published regularly to reflect updates. Oecd transfer pricing guidelines for multinational enterprises and tax administrations. Application of the oecd model tax convention to partnerships,1 the. Model tax convention on income and on capital model tax. Oecd ilibrary model tax convention on income and on. Replace paragraph 27 of the introduction by the following. Download taxation of capital gains under the oecd model convention or read online books in pdf, epub, tuebl, and mobi format. Oecd releases draft update to model tax conventionmne tax.
Oecd member countries by paolo arginelli and michael dirkis1 8. The 2017 revisions will be incorporated in a revised version of the oecd model and commentaries. Also see, oecd, model tax convention on income and on capital. The oecd g20 beps project provides governments with solutions for closing the gaps in existing international rules, that currently allow corporate profits to disappear or be artificially shifted to lowno tax environments, where little or no economic activity takes place. Oecd today released a draft of the 2017 update to the oecd model tax convention, which is used by many countries as a basis to negotiate bilateral tax treaties the oecd said that many of the draft changes have already been approved as part of the oecd g20 base erosion profit shifting beps plan or have been previously released for comment. Feb, 2012 in july 2008, the oecd model tax convention began including a mandatory arbitration provision for taxpayers failing to reach agreement under map.
This model is accompanied by a set of commentaries that reflect oecd level interpretation of the content of the model convention provisions. This model is accompanied by a set of commentaries that reflect oecdlevel interpretation of the content of the model convention provisions. Oecd model tax convention on income and on capital 2010 oecd commentary ebook book title. In general, this model allocates the primary right to tax to the country from which capital investment originates i. The result is a global network of over 3000 bilateral tax treaties, often called double taxation agreements, almost all of which are based directly or indirectly on an oecd model convention. Taxation of capital gains under the oecd model convention. It is the basis for negotiation and application of bilateral tax treaties between countries, designed to assist business while helping to prevent tax evasion and. The model tax convention is therefore today an ambulatory convention which is updated periodically and. Issues related to article 14 of the oecd model tax convention. Nov 21, 2017 bombay chartered accountants society bcas knowledge resource update title. Data and research on tax treaties including oecd model tax convention, mutual agreement procedure statistics, prevention of treaty abuse. The 2014 oecd update will be of interest to luxembourg practitioners for. Uk national archives, file ir409629a and bundesarchiv, file b 1266034 and 6035. This book is essential reading for all those dealing with tax treaty issues.
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