Limitation on treaty benefits: denial unless a resident qualifies as a qualified person, subject to active business and anti-abuse exceptions. Limitation on Benefits denies convention benefits to a resident unless the resident is a qualified person, defined to include individuals, States and subdivisions, publicly traded companies and affiliates, recognised pension funds and certain other entities meeting ownership and base erosion tests. Exceptions permit benefits where income emanates from the active conduct of a business, through derivative-benefits or headquarters-company rules, or via competent-authority discretionary relief. Anti-abuse safeguards include a principal purpose test and a low-tax third-jurisdiction rule tied to permanent establishment attribution, with mandated competent-authority consultation.
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.
Limitation on treaty benefits: denial unless a resident qualifies as a qualified person, subject to active business and anti-abuse exceptions.
Limitation on Benefits denies convention benefits to a resident unless the resident is a qualified person, defined to include individuals, States and subdivisions, publicly traded companies and affiliates, recognised pension funds and certain other entities meeting ownership and base erosion tests. Exceptions permit benefits where income emanates from the active conduct of a business, through derivative-benefits or headquarters-company rules, or via competent-authority discretionary relief. Anti-abuse safeguards include a principal purpose test and a low-tax third-jurisdiction rule tied to permanent establishment attribution, with mandated competent-authority consultation.
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