Taxation of capital allocates taxing rights by property type, distinguishing immovable, PE/fixed base, and international traffic assets. Immovable property situated in the other Contracting State may be taxed in that State; movable property forming part of the business property of a permanent establishment or pertaining to a fixed base for independent personal services may be taxed in the State where that permanent establishment or fixed base is located. Ships and aircraft operated in international traffic and movable property used in their operation are taxable only in the State of residence of the enterprise owning them, while all other elements of a resident's capital are taxable only in the State of residence.
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.
Taxation of capital allocates taxing rights by property type, distinguishing immovable, PE/fixed base, and international traffic assets.
Immovable property situated in the other Contracting State may be taxed in that State; movable property forming part of the business property of a permanent establishment or pertaining to a fixed base for independent personal services may be taxed in the State where that permanent establishment or fixed base is located. Ships and aircraft operated in international traffic and movable property used in their operation are taxable only in the State of residence of the enterprise owning them, while all other elements of a resident's capital are taxable only in the State of residence.
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