Permanent establishment taxation: permits one state to apply a higher tax rate than the other within a capped margin. The Protocol provides that paragraph 4 of Article 8 lapses three years after entry into force; permits mutual agreement procedure for supervisory activities on qualifying turnkey projects meeting specified conditions (government approval, fee and cost thresholds, duration limits, and absence of tax avoidance), allowing taxation in the project State of supervisory fees at up to the Article 12 rate for royalties and technical service fees; and authorises either Contracting State to tax a permanent establishment at a higher rate than domestic counterparts subject to a capped differential and a requirement of no less favourable treatment than third-country permanent establishments.
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: permits one state to apply a higher tax rate than the other within a capped margin.
The Protocol provides that paragraph 4 of Article 8 lapses three years after entry into force; permits mutual agreement procedure for supervisory activities on qualifying turnkey projects meeting specified conditions (government approval, fee and cost thresholds, duration limits, and absence of tax avoidance), allowing taxation in the project State of supervisory fees at up to the Article 12 rate for royalties and technical service fees; and authorises either Contracting State to tax a permanent establishment at a higher rate than domestic counterparts subject to a capped differential and a requirement of no less favourable treatment than third-country permanent establishments.
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