Article 5 of Multilateral Instruments | Application of Methods for Elimination of Double Taxation

In a typical scenario, the State of residence has the right to tax the resident taxpayer’s global income, and the State of the Source has the right to tax the taxpayer on the income received/derived by him from the State of the Source. Accordingly, the taxpayer is subject to taxation in both the State of … Continue reading Article 5 of Multilateral Instruments | Application of Methods for Elimination of Double Taxation →

Article 4 of MLI | Dual Resident Entities

Article 4 of the Multilateral instruments on the tax residency of dual resident entities

Article 3 of MLI – Fiscally transparent entities

Article 3 of the Multilateral Convention directs taxation of income of the fiscally transparent entities

Article 3(1) of MLI – Taxation of income derived by or through fiscally transparent entities

Article 3(1) is the primary provision of Article 3. It reflects BEPS Action Plan 2 measure that addresses income earned through fiscally transparent entities. To understand this provision’s genesis, we need to look into the issues of fiscally transparent entities while availing the treaty benefits. Whether treaty applies to a Fiscally transparent entity? Article 1 … Continue reading Article 3(1) of MLI – Taxation of income derived by or through fiscally transparent entities →