The Dependent Services Clause in Tax Treaties

The Dependent Services Clause in Tax Treaties
This analysis of more than 280 court decisions from 24 countries deals with tax treaty provisions concerning remuneration for cross-border employment.

Why this book?

This book is a study of court practice dealing with tax treaty provisions concerning cross-border dependent personal services. Which country has the right to tax employees’ cross-border earnings such as salaries and similar remuneration for work? Hopefully, the book will be useful for practitioners and for further research.
The author analyses more than 280 court decisions from 24 countries, all dealing in some way with cross-border earnings from employment work. The aim is to support the needs of practitioners and to facilitate further research on these topics.
The court decisions deal with salaries and similar benefits and remuneration from dependent personal services, pensions, savings schemes, severance payments, sickness payments, stock options, government services, frontier workers, hiring out of labour, services aboard ships and aircraft, trucks and trains, sportspersons, artists, musicians, professors and teachers, and more.
In the analysis of these topics, a number of other important tax treaty issues are visited, such as treaty interpretation in good faith under the Vienna Convention on the Law of Treaties, the limits of the tax treaty mutual agreement clause, static vs dynamic interpretation of tax treaties, subject-to-tax provisions, the tax treaty renvoi clause, the other income clause of the tax treaties, the status of the OECD Commentary as a legal source, and exit tax on certain benefits.

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Sample excerpt, including table of contents

Author(s)

Arvid Aage Skaar is professor emeritus at the Law School of the University of Oslo.

The Dependent Services Clause in Tax Treaties
Chapter 1: Introduction
Chapter 2: What is Meant by “Income” from Employment?
Chapter 3: The “Physical Presence Test”
Chapter 4: The “Exception Rule”
Chapter 5: Issues Related to Frontier Workers
Chapter 6: Income Replacing Remuneration for Dependent Personal Services (Surrogate Income)
Chapter 7: Jurisdiction to Tax Income from Employment Earned over Several Years
Chapter 8: The International Traffic Rule – Employment aboard Ships and Aircraft
Chapter 9: Employment Income or Income from Government Service?
Chapter 10: Employment Income Clause or the Professor and Teacher Clause?
Chapter 11: Employment Income or Directors’ Fees?
Chapter 12: Dependent or Independent Personal Services?
Chapter 13: Employment or Activities of a Sportsperson or Artist?
Chapter 14: When Is the Other Income Clause Applicable? – A Special Treaty Text
Chapter 15: “Subject-to-Tax” Issues
Chapter 16: Tax Equalization Agreements
Chapter 17: Exit Tax on Pensions and Annuities
Chapter 18: Employer’s Social Security Contributions
Chapter 19: Static or Dynamic Interpretation under the Renvoi Clause?
Chapter 20: Deduction for Expenses on Exempt Income
Chapter 21: Do the Employment Clauses in China’s Tax Treaties Apply to Hong Kong?
Bibliography