Double Taxation, MAPs and APAs, OECD, Tax Treaties, Transfer Pricing

(Tax Policy Division, Ministry of Finance, India) and (Tax Policy Center of the University of Lausanne, Switzerland)/ /Leave a comment

Corresponding adjustments and the MAP process When the price charged for goods or services sold between related parties is not in accordance with the arm’s length principle, Article 9(1) of the OECD Model authorizes the tax authorities of a State to make primary adjustments to the transfer price. This may trigger economic double taxation as…

BEPS, Digitalization, Permanent Establishments, Value Creation

(Tax Policy Center of the University of Lausanne, Switzerland) and (Tax Policy Division, Ministry of Finance, India)/ /Leave a comment

The Existing Framework: Nexus and Profit Attribution Rules Under the current Double Taxation Avoidance Agreement (DTAA) framework, business profits are in principle taxable in the State of residence of the enterprise. However, the source (market) jurisdictions may tax the profits if a permanent establishment (PE) is triggered therein. A PE arises when the non-resident operates…