Article 5 of the MLI contains provisions that provide three options for the elimination of double taxation. Countries may choose to address cases of double non-taxation that may where countries use the exemption method to prevent double taxation of income that is not taxed in the State of the source. OECD model convention provides two … Continue reading Elimination of double taxation – Article 5 of MLI
Tag: Article 5 of MLI
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