What is the purpose of the model tax convention prepared by the OECD and the UN?
A comprehensive framework for cooperation in taxation between countries and checking the shifting of tax base for saving profits from taxation are the most popular issues for academic and legal discourse in the field of international taxation today.
What is the difference between United Nations Model Convention and OECD Model Convention?
The main difference between the two model Conventions is that the United Nations Model Convention imposes fewer restrictions on the taxing rights of the source country; source countries, therefore, have greater taxing rights under it compared to the OECD Model Convention.
What is meant by double taxation?
Double taxation refers to the imposition of taxes on the same income, assets or financial transaction at two different points of time. Double taxation can be economic, which refers to the taxing of shareholder dividends after taxation as corporate earnings.
Can the UN impose taxes?
The United Nations has no authority or mechanisms to enforce an international tax and can only urge its 193 members to do so. The world body plays a marginal role in economic issues, which is the realm of the World Bank and International Monetary Fund.
Which rule of taxation does UN Model Convention generally follows?
The United Nations Model Convention generally favours reten- tion of greater so called “source country” taxing rights under a tax treaty—the taxation rights of the host country of investment—as compared to those of the “residence country” of the investor.
What is a primary difference between the OECD and UN model tax treaties quizlet?
46. What is a primary difference between the OECD and UN model tax treaties? B) The model treaty advocated by the UN grants more taxing rights to the host country than does the OECD model when income repatriation is out of developing countries.
What are the objectives of double taxation?
The objective of a Double Taxation Avoidance Agreements is to provide a settlement between two countries interested in taxing a particular source of income by establishing rules for division of revenue and reducing the rates of tax on some types of incomes.
What is the example of double taxation?
The term “double taxation” can also refer to the taxation of some income or activity twice. For example, corporate profits may be taxed first when earned by the corporation (corporation tax) and again when the profits are distributed to shareholders as a dividend or other distribution (dividend tax).
What are the causes of double taxation?
The root cause of double, multiple taxation is the contradictory tax laws (Sergeyev, 2019).
Is UN income tax exempt?
Generally, salary, grants and allowances paid by the UN are exempt from income tax. For US citizens, this is done indirectly, with income tax paid, and subsequently reimbursed by the UN to ensure that there is income parity between staff members of similar salary but different nationalities.
Is the UN tax free?
Income taxes: Most member states have granted United Nations staff exemption from national income taxation on their United Nations emoluments. However, a few member States do tax the emoluments of their nationals. In such cases, the organizations reimburse the income tax to the staff member.
Is un salary tax free in India?
What is the taxability of the Salary and pension received by UN employees in India? Salaries received by employees of the UNO or any person covered under the UN (Privileges and Immunities) Act, 1947 as well as pension received by them from the UN will be exempt from income tax.