7 Questions
What types of taxes are covered by the OECD Model Treaty?
Taxes on income and capital
What is the purpose of the terminology and nomenclature in the Model Treaty?
To be precise and widely applicable
How are direct and indirect taxes treated in the Model Treaty?
They are not specifically distinguished
Are social security charges considered taxes under the Model Treaty?
No
Which article in the Model Treaty lists the taxes covered?
Article 2
What does Article 30 of the Model Treaty allow for?
Territorial extension of the treaty
What is the purpose of tax treaties?
To restrict taxing rights and avoid double taxation
Study Notes
- The OECD Model Treaty covers taxes on income and capital, but not indirect taxes or property transfer duties.
- The terminology and nomenclature in the Model Treaty aim to be precise and widely applicable.
- Direct and indirect taxes are not specifically distinguished, and fees and charges can be difficult to distinguish from taxes.
- Social security charges are generally not considered taxes.
- Article 2 lists the taxes covered by the Model Treaty.
- Article 30 allows for territorial extension of the treaty.
- Articles 31 and 32 deal with entry into force and termination of the treaty.
- Double taxation is the imposition of tax on the same income by multiple jurisdictions.
- Economic and juridical double taxation are the two forms that exist.
- Tax treaties operate by restricting taxing rights and have a legal nature as agreements between two states.
Think you know everything there is to know about the OECD Model Treaty? Test your knowledge with this quiz! From the taxes covered by the treaty to the different forms of double taxation, this quiz will challenge your understanding of one of the most important international tax agreements. Sharpen your skills and learn more about this legal agreement by taking this quiz today.
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