Exemption Method and Credit Method - The Application of Article 23 of the OECD Model

Book Overview

This book performs a thorough examination of the latest challenges surrounding the implementation of Articles 23A and 23B within the OECD Model.

Key Themes and Topics

The method article is crucial in preventing juridical double taxation within any tax treaty. It defines the extent to which the residence state limits its taxation of a specific income item when both contracting states have the right to tax according to the treaty's distributive provisions. Calculating the appropriate relief can be complex due to the interpretative language of articles 23A and 23B of the OECD Model. In the European Union, this complexity is heightened by the requirement that the method article's application complies with EU law, particularly regarding fundamental freedoms and State aid rules. Additionally, the method article in the OECD Model has been revised following the Base Erosion and Profit Shifting (BEPS) Project, calling for a deeper analysis of these adjustments.

This books delves into the current issues surrounding the application of articles 23A and 23B of the OECD Model. Key areas covered include:

• The utilization of the method article and unilateral measures to mitigate double taxation;
• addressing conflicts in allocation within the framework of the method article;
• conflicts of qualification under articles 23A(1) and 23B(1) of the OECD Model;
• the credit method in managing differing tax treatments on income and capital;
• the exemption method with proviso safeguarding progression; and
• relief from double taxation and EU State aid law