Exemption Method and Credit Method

The Application of Art. 23 OECD Model Convention

Exemption Method and Credit Method
This book aims to provide an in-depth analysis of any and all current issues related to the application of Art 23A and 23B of the OECD Model.

Why this book? 

The method article of any tax treaty plays an essential role in avoiding juridical double taxation. It determines the extent to which the residence state refrains from taxing an item of income if both contracting states may tax according to the distributive rules of the treaty. Calculating the respective relief can be challenging, as the wording of both articles 23A and 23B of the OECD Model leaves significant room for interpretation. In the European Union, such interpretation is made even more difficult because the application of the method article needs to comply with EU law, in particular with the fundamental freedoms and the State aid rules. Finally, the method article of the OECD Model has – in the aftermath of the Base Erosion and Profit Shifting Project – undergone adaptations, the impact of which requires further analysis. 

This book aims to provide an in-depth analysis  of all the current issues related to the application of articles 23A and 23B of the OECD Model. The topics discussed include: 

  • the method article and unilateral measures to avoid double taxation;
  • the method article and allocation conflicts;
  • conflicts of qualification under articles 23A(1) and 23B(1) of the OECD Model;
  • the credit method and different taxes on income and on capital;
  • the exemption method with proviso safeguarding progression; and
  • relief from double taxation and EU State aid law


Sample excerpt, including table of contents

This book is part of the WU Institute for Austrian and International Tax Law - Tax Law and Policy Series

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G. Kofler et al. 

List of Contributors

François Barreau, Valentin Bendlinger, Vera Hellebrandt, Rita Julien, Georg Kofler, Michael Lang, Belisa Ferreira Lotti, Xiangdan Luo, Joy Waruguru Ndubai, Theres Neumüller, Nicholas Pacher, Cristian Camilo Rodriguez Peña, Pasquale Pistone, Siddhesh Rao, Alexander Rust, Philipp Walter Scharizer, Karoline Spies, Claus Staringer

Exemption Method and Credit Method
Chapter 1: Method Article and Unilateral Measures to Avoid Double Taxation
Chapter 2: Method Article and Allocation Conflicts
Chapter 3: Conflicts of Qualification under Articles 23A(1) and 23B(1)
Chapter 4: Conflicts of Qualification under Article 23A(4)
Chapter 5: Notion of “Tax” under the Credit Method
Chapter 6: Credit Method and Maximum Tax Credit
Chapter 7: Credit Method and Different Taxes on Income and on Capital
Chapter 8: Tax Sparing
Chapter 9: Exemption Method with Proviso Safeguarding Progression
Chapter 10: Exemption Method and Domestic Law
Chapter 11: Method Article, Secondary EU Legislation and the Fundamental Freedoms
Chapter 12: Relief from Double Taxation and EU State Aid Law