Abstract
Apart from the periodical update on regimes assessed and countries to be deemed non-cooperative, this report
of the Code of Conduct Group includes an annex on foreign source income exemption regimes. Such regimes
run contrary to the Code in the event they extend to passive income without a clear link to real activity in the
exempting jurisdiction. In the case substance requirements are to be met, the national regime should provide
for robust anti-abuse rules and remove any degree of discretion by tax authorities to determine the scope of
the exemption. In respect of active income, there should be a clear link to a permanent establishment abroad
(as defined by the OECD Model Tax Convention as an internationally agreed standard).
of the Code of Conduct Group includes an annex on foreign source income exemption regimes. Such regimes
run contrary to the Code in the event they extend to passive income without a clear link to real activity in the
exempting jurisdiction. In the case substance requirements are to be met, the national regime should provide
for robust anti-abuse rules and remove any degree of discretion by tax authorities to determine the scope of
the exemption. In respect of active income, there should be a clear link to a permanent establishment abroad
(as defined by the OECD Model Tax Convention as an internationally agreed standard).
Original language | English |
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Article number | H&I 2023/2 |
Journal | Highlights & Insights in European Taxation |
Volume | 2023 |
Issue number | 1 |
Publication status | Published - Jan 2023 |
Court cases
Title | H&I 2023/2 |
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Court | Council of the European Union |
Date of judgement | 24/11/22 |
Case number | JCDI:ADS686104:1 |