International Double TaxationPDF电子书下载

Chapter 1 Introduction 1

1.01 Defiinition of a Double Taxation Convention 1

1.02 Juridical Double Taxation 1

1.03 Why Does Double Taxation Occur？ 1

1.04 Economic Double Taxation 2

1.05 The Legal Status of the Danish Conventions 3

1.06 The Model Convention 3

1.07 Survey of the Systematization of the Model Convention 4

［A］ Brief Overview of the Model Convention 4

［B］ The Technique Behind Elimination of Double Taxation 4

［C］ Elimination of Double Taxation 4

1.08 Summary of the Articles in the Model Convention 5

1.09 Example of the Application of a Convention in Practice 9

1.10 The Commentary to the Model Convention 10

1.11 Why Conclude a Convention？ 10

［A］ Certainty of the Tax Treatment in a State 11

［B］ Reduction of Withholding Taxes 11

［C］ Exchange of Information 11

［D］ Mutual agreement Procedure 11

Chapter 2 The OECD Model Convention 13

2.01 Article 1： Persons Covered 13

［A］ A PE Is Subject Only to Limited Tax Liability， that Is a PE Is Not Regarded as a Person Who Is a Resident 13

［1］ The Bilateral Situation 13

［2］ Three States Are Involved 13

［B］ Partnerships 16

［1］ Different Characterization of the Tax Subject 16

［a］ Treatment of the Partnership in the State of Residence of the Partner 16

［b］ Treatment of the Partnership in the Source State 18

［2］ Different Characterization of Items of Income（Or Capital） 25

2.02 Article 2： Taxes Covered 26

［A］ Enumeration of Taxes 26

［B］ Social Security Taxes 27

2.03 Article 3： General Definitions 27

［A］ Defiinition of the Two States 27

［B］ Definition of the Terms ‘Person’ and ‘Company’ 28

［C］ Terms Which Are Not Defined 28

2.04 Article 4： Resident 28

［A］ The Term ‘Resident’ 28

［B］ Individuals 29

［C］ Is It of Any Signifiicance that a Person Is Fully Liable to Tax in a State （in the Example Below， Denmark） Which， for Purposes of the Convention， Has Been Classifiied as the Source State？ 30

［D］ Legal Persons 30

［1］ The ‘Place of Effective Management’ Is Crucial 30

［2］ Dual Residence Dealt with on a Case-by-Case Basis 31

［E］ Taxation on a Global Or Territorial Basis 31

［F］ Some States Apply Both Principles 31

2.05 Article 5： Permanent Establishment 32

［A］ Defiinition 32

［B］ Examples 32

［C］ The Meaning of the Word ‘Fixed’ 33

［1］ Commercial and Geographic Coherence 33

［2］ The Duration of the Activity 34

［D］ Leasing of Equipment 35

［E］ When Does a PE Begin and Cease to Exist？ 35

［F］ Can a PE Have a PE？ 36

［G］ A Building Site Or Construction Or Installation Project 37

［1］ Activities Covered by ‘a Building Site or Construction or Installation Project’ 37

［2］ Commercial and Economic Coherence 37

［3］ What Is a Geographic Area？ 38

［4］ Interruptions during the Building Period 38

［H］ Pipelines， Cables Et Cetera 38

［I］ Activities Which Do Not Constitute a PE 40

［1］ Sale Activity from the Place of Business 40

［2］ The PE Performs Essential Activities 41

［3］ The Term ‘Delivery’ in Subparagraph a） of Paragraph 4 42

［J］ Dependent Agents 42

［K］ Independent Agents 43

［L］ Electronic Commerce 43

2.06 Article 6： Income from Immovable Property 44

2.07 Article 7： Business Profiits 44

［A］ Profit May Be Taxed in the State Where the PE Is Situated 44

［1］ The ‘Force of Attraction’ Principle Is Not Applied in the OECD Model 45

［B］ Basically a PE Shall Be Treated As an Independent Enterprise 45

［1］ The Report ‘Attribution of Profits to PEs’ 45

［2］ Especially about PEs under Paragraph 3 of Article 5（Building Site， Etc.） 46

［C］ Determination of the Profits： Deduction for Expenses 46

［1］ Payments between the Head Office and the PE 46

［a］ Internal Transfer of Goods 47

［b］ Services 47

［c］ Interest from Internal Claims 47

［d］ Special Rule for Financial Enterprises 48

［e］ Intangible Rights 48

［2］ Interest of Debts Incurred by the Enterprise 48

［D］ Indirect Costs 49

［E］ Foreign Exchange Gains Or Losses 50

2.08 Article 8： Shipping and Air Transport 50

［A］ Profit from Operation in International Traffic 50

［B］ The Term ‘International Traffiic’ 50

［C］ Activities Connected with Shipping and Air Transport 51

［1］ Bare Boat Charter and Time Charter 51

［2］ Other Activities 51

［3］ Inland Transportation 51

［4］ Leasing of Containers 52

［5］ Sale of Tickets 52

［6］ Income from Advertising 53

［D］ Investment Income of Shipping Or Air Transport Enterprises 53

［E］ Relation between Article 8 and Article 5 53

［F］ Freight Taxes 53

［G］ Widening of the Scope of the Provision 54

2.09 Article 9： Associated Enterprises 54

2.10 Article 10： Dividends 55

［A］ Dividends May Be Taxed in the State of Residence 55

［B］ The Source State Has a Limited Right to Tax Dividends 55

［C］ The Concept ‘the Beneficial Owner’ 55

［1］ Condition for Reduction of Danish Tax on Dividends 56

［D］ The Danish Legislation Concerning Dividends 56

［E］ The Concept ‘Beneficial Owner’ and Conduit Companies 56

［1］ What Is a Conduit Company？ 57

［2］ How to Prevent This Abuse？ 58

［a］ Widened Interpretation of the Concept ‘Beneficial Owner’ 58

［b］ The Concept ‘Limitation of Benefits’ 58

［c］ A Decision from the Swiss Supreme Court 60

［d］ Can Abuse be Avoided Effectively？ 61

［F］ The Dividends Are Connected with a Permanent Establishment 61

［G］ Branch Profits Tax 62

2.11 Article 11： Interest 62

［A］ Interest May Be Taxed in the State of Residence 62

［B］ The Source State Has a Limited Right to Tax Interest 62

［C］ Special Agreements Concerning Certain Categories of Interest 63

［D］ The Interest Is Connected with a Permanent Establishment 64

［E］ Determination of the Source of the Interest 64

［1］ Two States Involved 64

［2］ Three States Involved 65

［F］ Special Relationship between the Payer and the Beneficial Owner 66

2.12 Article 12： Royalties 66

［A］ Royalties Are Taxable Only in the State of Residence 66

［B］ The Definition of Royalties in the OECD Model 66

［C］ Denmark Can Tax Outgoing Royalties 67

［D］ The Meaning of the Words ‘the Use of Or the Right to Use’ 67

［E］ The Distinction between Know-How and Services 68

［F］ Especially about Software 68

［1］ Transfer of Rights to the Underlying Copyright 69

［2］ Transfer of Rights in a Copy of the Program 69

［3］ Transfer of Know-How or Secret Formula 69

［G］ Royalty Connected with a PE 70

［H］ Relationship between the Payer and the Beneficial Owner 70

［I］ Practical Examples 70

2.13 Article 13： Capital Gains 75

2.14 Article 14： Independent Personal Services 76

2.15 Article 15： Income from Employment 77

［A］ Income from Employment 77

［B］ Exception if Certain Conditions Are Met 77

［1］ Presence Not More Than 183 Days 78

［2］ The Employer May Not Be a Resident of the Work State 79

［3］ Salary Is Not Borne by a PE 79

［a］ A Triangular Case 79

［C］ Hiring Out of Labour 80

2.16 Article 16： Director’s Fees 82

2.17 Article 17： Artistes and Sportsmen 82

2.18 Article 18： （Private） Pensions 83

［A］ The Pensions Are Taxable Only in the State of Residence 83

［B］ Social Pensions and Other Social Security Benefiits 83

［C］ Annuity Assurances 84

［D］ Danish Treaty Policy 84

［1］ Example of the Wording of Article 18 in a Danish Convention 84

［E］ Payments Covered by the Social Security Legislation 85

［F］ Another Wording of Article 18 in the Danish Conventions 85

［G］ Limited Right to Deduct Payments to Foreign Pension Funds， Etc. 86

［H］ Proposal Contained in the OECD Model Convention 86

［I］ Deduction for Payments to Foreign Pension Schemes 88

［J］ Partial Renunciation of Taxing Pensions 89

2.19 Article 19： Government Service 90

［A］ Public Authorities 90

［B］ Salary Is Taxable Only in the Working State 91

［C］ Public Pensions and Other Similar Remuneration 91

［D］ Business Carried on by the State 91

2.20 Article 20： Students 92

2.21 Article 21： Other Income 92

［A］ Examples of Items of Income Covered by the Article 92

［B］ Income from Third States 92

［C］ Income Associated with a PE 94

2.22 Article 22： Taxation of Capital 94

2.23 Article 23： Methods for Elimination of Double Taxation 94

［A］ The Credit Method 95

［B］ The Exemption Method 97

［1］ ‘Old’ Exemption 97

［2］ ‘New’ Exemption 98

［C］ Exemption Method and Employment Income 98

2.24 Article 24： Non-discrimination 100

2.25 Article 25： Mutual Agreement Procedure 101

2.26 Article 26： Exchange of Information 102

2.27 Article 27： Assistance in Collection of Taxes 103

Chapter 3The UN Model 105

3.01 Introduction 105

3.02 Article 5： Permanent Establishment 105

［A］ A Building Site and Furnishing of Services 105

［B］ Activities Which Do Not Constitute a PE 106

［C］ Dependent Agents 107

［D］ Insurance Provision 107

［E］ Independent Agents 108

3.03 Article 7： Business Profits 108

［A］ ‘Force of Attraction’ 108

［B］ Determination of the Profiits： Deduction for Expenses 109

3.04 Article 8： Shipping， Inland Waterways Transport and Air Transport 109

3.05 Article 9： Associated Enterprises 110

3.06 Article 10： Dividends 110

3.07 Article 11： Interest 110

3.08 Article 12： Royalties 110

［A］ The Source State Is Entitled to Tax Royalties 111

［B］ The Definition of Royalties Is Widened 111

［C］ Determination of the Source of the Royalty 111

3.09 Article 13： Capital Gains 112

3.10 Article 14： Independent Personal Services 112

3.11 Article 16： Director’s Fees and Remuneration of Top-Level Managerial Offiicials 113

3.12 Article 18： Pensions and Social Security Payments 113

3.13 Article 21： Other Income 114

Chapter 4Provisions Which Are Not Included in the Model Conventions 115

4.01 Technical Fees 115

4.02 Professors， Teachers and Researchers 116

4.03 Activities in Connection with Preliminary Surveys， Exploration or Extraction of Hydrocarbons 116

4.04 Tax Sparing （Matching Credit） 119

4.05 Most-Favoured Nation Clause 120

4.06 Taxation of Services 120

Chapter 5Agreements Containing a Single Provision Concerning ‘Exchange of Information’ 123

Chapter 6New Wording of Article 7 in the 2010-Update of the Model Convention 125

Chapter 7Changes in the Commentaries in the 2010-Update of the Model Convention 127

7.01 Cross-Border Issues Relating to Collective Investment Vehicles 127

［A］ The Application of the OECD Model Convention to CIVs 128

［B］ Proposals for Provisions Modifying the Treatment of CIVs 129

7.02 New Commentaries to Article 7 131

［A］ The Report 131

［B］ The New Commentaries 136

［1］ The Commentary to Paragraph 1 137

［2］ The Commentary to Paragraph 2 138

［3］ The Commentary to Paragraph 3 142

［4］ The Commentary to Paragraph 4 144

7.03 New Commentaries to Article 15 Concerning the Hiring Out of Labour 145

7.04 Application of Tax Treaties to State-Owned Entities， Including Sovereign Wealth Funds 149

7.05 Issues Relating to Common Telecommunication Transactions 150

Appendix ⅠThe OECD Model and the UN Model Arranged as Parallel Texts 153

Appendix ⅡAgreement on Mutual Administrative Assistance Concerning Exchange of Information 201

Appendix ⅢAgreement between the Government of Denmark and the Government of the Cayman Islands Concerning Information on Tax Matters 207

Index 215