The Resource Minimum treshold in tax treaties

Minimum treshold in tax treaties

Minimum treshold in tax treaties
Minimum treshold in tax treaties
  • eng
  • eng
The special tax rules for sportspersons (and entertainers) very often lead to problems, resulting in excessive or even double taxation and much administrative work. Art. 17 OECD Model is followed by many countries in their tax treaties and allocates the taxing right to the country of work, while the residence country will also tax the income (as part of the worldwide income) and will allow a tax credit to eliminate double taxation. But this very often goes wrong. The OECD had decided not to remove art. 17 from its Model Tax Convention, but has acknowledged the problems and has given five options to restrict the scope of the article. One of the options is to insert a minimum threshold for performers in art. 17, under which the taxing right is not allocated to the country of the work. This article discusses this new option for a minimum threshold for performers in tax treaties, explains that it comes from the US treaty practice, gives an overview of the practical use and shows which dynamic choice the new option gives to tax treaty negotiators
Citation source
In: Global sports law and taxation reports. - Sint-Michielsgestel. - Vol. 7 (2016),
Molenaar, D
Geographic coverage
Language note
  • OECD Model
  • sportsperson
  • entertainer
  • tax treaty
  • double taxation
  • US Model
  • tax treaty
  • allocation of taxing rights

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