International Taxation

Basic elements of international tax law and international double taxation law, including analysis of the OECD Model Convention on Avoidance of Double Taxation on Income and Capital

1. Introduction. International Tax Law and International Double Taxation Law.

1.1. Concepts.

1.2. Basic Legal Issues.

2. International Double Taxation. Types, Measures and Methods of its avoidance.

2.1. Economic Double Taxation vs. Legal Double Taxation.

2.2. Unilateral, Bilateral and Multilateral Measures.

2.3. Exemption Method and Tax Credit Method.

2.3.1. Full Exemption vs. Exemption with Progression.

2.3.2. Ordinary Tax Credit vs. Full Tax Credit.

2.3.3. Per-Income Limitation and Per-Country Limitation.

3. Model Double Taxation Conventions (OECD, UN, US).

3.1. OECD Model Double Taxation Convention. Concept and Development (1963, 1977, 1992-onwards). Detailed Structure.

3.2. UN and US Model Double Taxation Conventions. Brief Overview.

3.3. Source Country vs. Residence Country. Unlimited and Limited Tax Liability. Scope of Application of Double Taxation Treaties and Determination of the Residence for International Taxation Purposes.

3.3. Permanent Establishment and Taxation of Business profits. Concepts and Consequences in the Bilateral Double Taxation Treaties.

3.4. General Concept of Cross-Border Taxation of “Passive Income”. Taxation of Cross-Border Payments of Dividends, Interest and Royalty Payments under Polish Tax Law and Bilateral Double Taxation Treaties. Taxation of Cross-Border Leasing Payments.

3.5. Taxation of International Capital Gains.

3.6. International Taxation of Dependent Services and Directors’ Fees.

3.7. International Taxation of Associated Enterprises and International Transfer Pricing Issues.

3.8. Taxation of so-called “Other Income”.

3.9. Entry into Force vs. Effective Date of the Bilateral Double Taxation Treaty.

4. Tax Havens.

4.1. Characteristcs of Tax Havens and their Treatment under International Tax Law. Selected Examples

4.2. Advantages and Disadvantages of Using Tax Havens. OECD’s “Black List” vs. Poland’s Black List.

5. Other International Taxation Issues.

Michał Wilk, Polish Tax System Business Opportunities and Challenges, 2017

Klaus Vogel, On Double Taxation Conventions, Kluwer Law International, Deventer, 1997

OECD, Model Tax Convention on Income and on Capital, OECD, Paris, 2017

Ned Shelton, Interpretation and Application of Tax Treaties, Tottel Publishing, Haywards Heath/UK, 2007

Ben J.M. Terra, Peter J. Wattel, European Tax Law, 4th Edition, Kluwer Law International, The Hague/TheNetherlands, 2005

Philip Baker, Double Taxation Conventions and International Tax Law, Sweet & Maxwell, London 1994

M. Pires, International Juridical Double Taxation of Income, Kluwer, Deventer 1989

Providing basic orientation in international taxation issues and knowledge of methods and measures for avoidance of international double taxation

Final paper on 2 selected topics discussed during the course