Taxation of Interest Under Domestic Law: EU Law and Tax Treaties

Taxation of Interest Under Domestic Law: EU Law and Tax Treaties
This book comprises the proceedings and working documents of the EC & International Tax Law seminar held in Milan in November 2021.

Why this book?

Taxation of Interest under Domestic Law, EU Law and Tax Treaties, comprising the proceedings and working documents of the annual seminar held in Milan in November 2021, is a detailed and comprehensive study on the tax treatment of cross-border interest payments.

The book starts with a comparative analysis of the definition of the term “interest” and a tax policy overview of the inclusion of cross-border interest in income. It then focuses on the most interesting open issues in the application of the EU Interest-Royalties Directive, including the concept of beneficial owner, the subject-to-tax test and the definition of “company of a Member State”, as well as hybrid financing. Next, the book thoroughly examines the taxation of interest under tax treaties. Beginning with a detailed account of the history of Article 11 of the OECD Model Tax Convention, the tax treaty section of the book discusses the definition of the term “interest” under tax treaties, the rules governing source, and issues of non-discrimination arising in relation to interest. Taking into account the inputs coming from various national reports, the book also maps some of the most relevant departures from the OECD Model Tax Convention that can be spotted in the actual treaty practice of different countries. Finally, the interactions between the beneficial ownership clause and the principal purpose test rule are scrutinized.

Moreover, individual country reports provide an in-depth analysis of the specific domestic tax regimes and tax treaty practice of several EU and non-EU countries, namely Australia, Austria, Belgium, Brazil, Canada, Finland, France, Germany, India, Italy, the Netherlands, South Africa, Spain, Sweden, Switzerland, the United Kingdom and the United States.

This book provides a unique and detailed analysis of some of the most important issues concerning cross-border taxation of interest, with a special focus on tax treaty matters. As such, it is an essential reference for international tax students, practitioners and academics.

This book is part of the EC and International Tax Law Series

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Sample excerpt, including table of contents

Contributor (s)

Autilia Arfwidsson, Brian Arnold, Valentin Bendlinger, Gabriel Bez-Batti, Yariv Brauner, Chloe Burnett, Felicity Cullen, Robert J. Danon, Rébecca Dorasamy, Werner Haslehner, Marjaana Helminen, Georg Kofler, Sarah Lauer, Geoffrey Loomer, Thomas Louvel, A.J. Marais, Félix Daniel Martinez Laguna, Markus Mittendorfer, Gerald Montagu, Bart Peeters, Irene Sarzi Sartori, Jacques Sasseville, Luís Eduardo Schoueri, Jonathan Schwarz, D.P. Sengupta, Cesare Silvani, Stan Stevens, Florian Striefler, C John Taylor, Lars Vanneste

Taxation of Interest under Domestic Law, EU Law and Tax Treaties
Chapter 1: Definition of Interest in the Context of Income from Capital: A Comparative Analysis
Chapter 2: A Tax Policy Analysis of the Inclusion of Cross-Border Interest in Income
Chapter 3: Open Issues in the Application of the EU Interest-Royalties Directive
Chapter 4: The Historical Evolution of Article 11 OECD Model Convention
Chapter 5: Definition of Interest under Article 11 of the OECD Model Convention and Possible Overlap with Other Distributive Rules
Chapter 6: Double Source
Chapter 7: Departures from Article 11 of the OECD Model Convention
Chapter 8: Interest and Non-Discrimination under the OECD Model Convention
Chapter 9: Conduit Companies Involving Interest Payments under Double Taxation Conventions: A Beneficial Ownership or a Principal Purpose Test Problem?
Chapter 10: Australia
Chapter 11: Austria
Chapter 12: Belgium
Chapter 13: Brazil
Chapter 14: Canada
Chapter 15: Finland
Chapter 16: France
Chapter 17: Germany
Chapter 18: India
Chapter 19: Italy
Chapter 20: Netherlands
Chapter 21: South Africa
Chapter 22: Spain
Chapter 23: Sweden
Chapter 24: Switzerland
Chapter 25: United Kingdom
Chapter 26: United States