Permanent establishment taxation may exceed domestic rates subject to a capped differential and non-discrimination protections. The Protocol provides that paragraph 4 of Article 8 will cease three years after entry into force; allows mutual agreement procedure for supervisory activities on approved turnkey projects meeting conditions (approval, turnkey nature, fee proportion cap, minimum project cost, duration limits, no tax avoidance), permitting taxation of supervisory fees in the project State at a rate not exceeding that applicable under Article 12 for royalties and technical service fees; and permits either State to tax permanent establishment profits at a higher rate than for similar domestic enterprises subject to a capped differential and non discrimination, with the Protocol integral to the Agreement and English operative on divergence.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Permanent establishment taxation may exceed domestic rates subject to a capped differential and non-discrimination protections.
The Protocol provides that paragraph 4 of Article 8 will cease three years after entry into force; allows mutual agreement procedure for supervisory activities on approved turnkey projects meeting conditions (approval, turnkey nature, fee proportion cap, minimum project cost, duration limits, no tax avoidance), permitting taxation of supervisory fees in the project State at a rate not exceeding that applicable under Article 12 for royalties and technical service fees; and permits either State to tax permanent establishment profits at a higher rate than for similar domestic enterprises subject to a capped differential and non discrimination, with the Protocol integral to the Agreement and English operative on divergence.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
