Tax treaties

Model Tax Convention on Income and on Capital 2014 (Full Version)

Published on October 30, 2015

Also available in: French

book

This publication is the ninth edition of the full version of the OECD Model Tax Convention on Income and on Capital. This full version contains the full text of the Model Tax Convention on Income and on Capital as it read on 15 July 2014, including the Articles, Commentaries, non-member economies positions, the Recommendation of the OECD Council, the historical notes (now expanded to go back to 1963), the detailed list of conventions between OECD member countries and the background reports.

TABLE OF CONTENTS

Foreword
Introduction
Model Convention32 chapters available
Title and Preamble
Article 1 Persons covered
Article 2 Taxes covered
Article 3 General definitions
Article 4 Resident
Article 5 Permanent establishment
Article 6 Income from immovable property
Article 7 Business profits
Article 8 Shipping, inland waterways transport and air transport
Article 9 Associated enterprises
Article 10 Dividends
Article 11 Interest
Article 12 Royalties
Article 13 Capital gains
Article 14 Concerning the Taxation of Independent Personal Services [Deleted]
Article 15 Income from employment
Article 16 Directors' fees
Article 17 Entertainers and sportspersons
Article 18 Pensions
Article 19 Government service
Article 20 Students
Article 21 Other income
Article 22 Capital
Article 23 A and 23 B. Exemption method and Credit method
Article 24 Non-discrimination
Article 25 Mutual agreement procedure
Article 26 Exchange of information
Article 27 Assistance in the collection of taxes
Article 28 Members of diplomatic missions and consular posts
Article 29 Territorial extension
Article 30 Entry into force
Article 31 Termination
Commentaries on the Articles of the Model Convention30 chapters available
Commentary on Article 1: Concerning the Persons Covered by the Convention
Commentary on Article 2: Concerning Taxes Covered by the Convention
Commentary on Article 3: Concerning General Definitions
Commentary on Article 4: Concerning the Definition of Resident
Commentary on Article 5: Concerning the Definition of Permanent Establishment
Commentary on Article 6: Concerning the Taxation of Income From Immovable Property
Commentary on Article 7: Concerning the Taxation of Business Profits
Commentary on Article 8: Concerning the Taxation of Profits From Shipping, Inlandwaterways Transport and Air Transport
Commentary on Article 9: Concerning the Taxation of Associated Enterprises
Commentary on Article 10: Concerning the Taxation of Dividends
Commentary on Article 11: Concerning the Taxation of Interest
Commentary on Article 12: Concerning the Taxation of Royalties
Commentary on Article 13: Concerning the Taxation of Capital Gains
Commentary on Article 14: Concerning the Taxation of Independent Personal Services
Commentary on Article 15: Concerning the Taxation of Income From Employment
Commentary on Article 16: Concerning the Taxation of Directors' Fees
Commentary on Article 17: Concerning the Taxation of Entertainers and Sportspersons
Commentary on Article 18: Concerning the Taxation of Pensions
Commentary on Article 19: Concerning the Taxation of Remuneration in Respect of Government Service
Commentary on Article 20: Concerning the Taxation of Students
Commentary on Article 21: Concerning the Taxation of Other Income
Commentary on Article 22: Concerning the Taxation of Capital
Commentary on Article 23 A. and 23 B.: Concerning the Methods for Elimination of Double Taxation
Commentary on Article 24: Concerning Non-Discrimination
Commentary on Article 25: Concerning the Mutual Agreement Procedure
Commentary on Article 26: Concerning the Exchange of Information
Commentary on Article 27: Concerning the Assistance in the Collection of Taxes
Commentary on Article 28: Concerning Members of Diplomatic Missions and Consular Posts
Commentary on Article 29: Concerning the Territorial Extension of the Convention
Commentary on Article 30 and 31: Concerning the Entry Into force and the Termination of the Convention
Non-OECD Economies’ Positions on the OECD Model Tax Convention29 chapters available
Non-OECD Economies' Positions on the OECD Model Tax Convention: Introduction
Positions on Article 1 (Persons Covered) and its commentary
Positions on Article 2 (Taxes Covered) and its commentary
Positions on Article 3 (General Definitions) and its commentary
Positions on Article 4 (Resident) and its commentary
Positions on Article 5 (Permanent Establishment) and its commentary
Positions on Article 6 (Income from Immovable Property) and its commentary
Positions on Article 7 (Business Profits) and its commentary
Positions on Article 8 (Shipping, Inlandwaterways Transport and Air Transport) and its commentary
Positions on Article 9 (Associated Enterprises) and its commentary
Positions on Article 10 (Dividends) and its commentary
Positions on Article 11 (Interest) and its commentary
Positions on Article 12 (Royalties) and its commentary
Positions on Article 13 (Capital Gains) and its commentary
Positions on Article 14 (Independent Personal Services) and its commentary
Positions on Article 15 (Income from Employment) and its commentary
Positions on Article 16 (Directors' Fees) and its commentary
Positions on Article 17 (Entertainers and Sportspersons) and its commentary
Positions on Article 18 (Pensions) and its commentary
Positions on Article 19 (Government Service) and its commentary
Positions on Article 20 (Students) and its commentary
Positions on Article 21 (Other Income) and its commentary
Positions on Article 22 (Capital) and its commentary
Positions on Article 23 A. and 23 B. (Exemption Method and Credit Method) and its commentary
Positions on Article 24 (Non-Discrimination) and its commentary
Positions on Article 25 (Mutual Agreement Procedure) and its commentary
Positions on Article 26 (Exchange of Information) and its commentary
Positions on Article 28 (Members of Diplomatic Missions and Consular Posts) and its commentary
Positions on Article 29 (Territorial Extension) and its commentary
Previous reports related to the Model Tax Convention26 chapters available
R(1). Transfer pricing, corresponding adjustments and themutual agreement procedure
R(2). The taxation of income derived from the leasingof industrial, commercial or scientific equipment
R(3). The taxation of income derived from the leasing of containers
R(4). Thin capitalisation
R(5). Double taxation conventions and the use of base companies
R(6). Double taxation conventions and the use of conduit companies
R(7). The taxation of income derived from entertainment, artistic and sporting activities
R(8). Tax treaty override
R(9). The 183 day rule: some problems of application and interpretation
R(10). The tax treatment of software
R(11). Triangular cases
R(12). The tax treatment of employees' contributions to foreign pension schemes
R(13). Attribution of income to permanent establishments
R(14). Tax sparing: a reconsideration
R(15). The application of the OECD Model Tax Convention to partnerships
R(16). Issues related to Article 14 of the Model Tax Convention
R(17). Restricting the entitlement to treaty benefits
R(18). Treaty characterisation issues arising from e-commerce
R(19). Issues arising under Article 5 (permanent establishment) of the Model Tax Convention
R(20). Cross-border income tax issues arising from employee stock-option plans
R(21). Improving the resolution of tax treaty disputes
R(22). Application and interpretation of Article 24 (non-discrimination)
R(23). Tax treaty issues related to REITs
R(24). The granting of treaty benefits with respect to the income of collective investment vehicles
R(25). Tax Treaty Issues Related to Emissions Permits/Credits
R(26). Issues Related to Article 17 of the OECD Model Tax Convention
Appendices2 chapters available
List of Tax Conventions on Income and on Capital Between OECD Member Countries
Recommendation of the OECD Council Concerning the Model Tax Convention on Income and on Capital
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background information

International juridical double taxation –  generally defined as the imposition of comparable taxes in two (or more) States on the same taxpayer in respect of the same subject matter and for identical periods – has harmful effects on the international exchange of goods and services and cross-border movements of capital, technology and persons. In recognition of the need to remove this obstacle to the development of economic relations between countries, as well as of the importance of clarifying and standardising the fiscal situation of taxpayers who are engaged in activities in other countries, the OECD Model Tax Convention on Income and on Capital provides a means to settle on a uniform basis the most common problems that arise in the field of international juridical double taxation.

The OECD Model requires constant review to address the new tax issues that arise in connection with the evolution of the global economy. Working Party No. 1 of the OECD's Committee on Fiscal Affairs meets this need and its work results in regular changes to the Model. Updates were published in 1994, 1995, 1997, 2000, 2003, 2005, 2008, 2010 and 2014.

Beginning with the 1997 update, the Model was presented in two volumes. Volume I includes the Introduction and the text of the Articles of the Model and their Commentaries. Volume II includes a section on the positions of non-member countries, reprints of previous reports dealing with tax conventions that the Committee on Fiscal Affairs has adopted since 1977, the list of tax conventions concluded between member countries and the text of the Council Recommendation on the Model Tax Convention. A condensed version of the Model, which includes only the Introduction, the text of the Articles of the Model, their Commentaries and the positions of non-member countries is also available.

The next update of the OECD Model Tax Convention is tentatively scheduled for mid-2017.

 

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