Quarterly tax treaty briefing: Summer 2016

A number of recent cases continue to underline that treaty non-discrimination articles can be a powerful tool for combating tax disadvantages in foreign jurisdictions. A recent case in France is a reminder that it is one of the few countries without an effective management or corporate residence concept. Effective planning can prevent the uncertainty of deductions for interest or royalties paid by a branch to its head office. Companies providing online services to Israeli consumers are likely to face the possibility of customers withholding tax from service payments. Following BEPS Action 1 other jurisdictions are also introducing or considering special tax legislation in relation to the digital economy. India’s treaty with Mauritius will no longer provide exemption from Indian tax on capital gains; and its treaties with Cyprus the Netherlands and Singapore are likely to be similarly amended. New treaties continue to reflect the impact of...