La última reforma del artículo 7 del modelo de convenio de la ocde y sus repercusiones para los convenios de doble imposición: especial mención al caso de la república federal de Brasil
We currently have two models of international conventions to avoid double taxation: the United Nations Model Tax Convention and the Organization for Economic Co-operation Development Model Tax Convention. These models are the most important international guidelines that follow States at the time of...
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Format: | Article |
Language: | Spanish |
Published: |
2012
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Subjects: | |
Online Access: | http://dialnet.unirioja.es/servlet/oaiart?codigo=4450284 |
Source: | Cognitio Juris, ISSN 2236-3009, Vol. 2, Nº. 5, 2012, pags. 76-91 |
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Summary: |
We currently have two models of international conventions to avoid double taxation: the United Nations Model Tax
Convention and the Organization for Economic Co-operation Development Model Tax Convention. These models
are the most important international guidelines that follow States at the time of signing their double taxation
conventions. These convention models do not define how to tax income and capital but the distribution of fiscal
power of the Contracting States to neutralize the harmful effects of international double taxation. While the
content of theses convention models is a guide for States (not binding), its provisions are also usually taken in the
double taxation conventions, so any change in its content may have repercussions on the bilateral subscribing
States. Business profits (art. 7) are among the different that regulate the models conventions and the double taxation conventions, whose treatment was changed in the OECD Model Tax Convention in late 2010 and whose
impact we analyze in the next points. More precisely, this paper has two main objectives: firstly, we will work to
develop the current tax treatment of business profits in the OECD Model Tax Convention; and secondly, we will
determine the potential impact that the new wording may lead to the Double Taxation Conventions signed by the
Federal Republic of Brazil. Specifically, on July 22, 2010 were published the final update of the OECD Model Tax
Convention 2010 and, finally, on September 13, 2010 was published the consolidated version of the new Model.
Whilst Article 7 was the only one reformed (business profits) this was not the only modification of the new Model,
and also reviewed the comments of most of the articles. Historically, within the binomial developed countries and
developing countries, the Federal Republic of Brazil can be considered as a developing country, therefore would
be theoretically more protected by the UN Model Tax Convention. Nevertheless, if we compare the provisions of
the OECD Model Tax Convention and the UN Model Tax Convention we can say that Double Taxation Conventions
signed by the Federal Republic of Brazil are based on the wording of Article 7 of the first one (without regard to its
latest version of 2010). From this we can see that the OECD Model Tax Convention has an important influence on
the bilateral convention concluded by the Federal Republic of Brazil. So this new amendment to its Article 7 is not
indifferent to that country and for its network of double tax conventions. |
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