Management and consultancy fees: taxable in recipient state; source state may impose limited withholding; permanent establishment exception applies. Management and consultancy fees may be taxed in the resident State of the recipient and may also be taxed in the State where they arise, subject to a Convention limit on the tax charged. The definition covers payments to non-employees for managerial, technical or consultancy services. If the recipient has a permanent establishment in the source State and the services are effectively connected there, the business profits rules apply. Fees are deemed to arise in the payer's State or, where borne by a permanent establishment, in the State of that permanent establishment. Related party excess payments are limited to the arm's length amount.
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.
Management and consultancy fees: taxable in recipient state; source state may impose limited withholding; permanent establishment exception applies.
Management and consultancy fees may be taxed in the resident State of the recipient and may also be taxed in the State where they arise, subject to a Convention limit on the tax charged. The definition covers payments to non-employees for managerial, technical or consultancy services. If the recipient has a permanent establishment in the source State and the services are effectively connected there, the business profits rules apply. Fees are deemed to arise in the payer's State or, where borne by a permanent establishment, in the State of that permanent establishment. Related party excess payments are limited to the arm's length amount.
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