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Tax Agreement Traduccion

The agreement was born out of the OECD`s work on combating harmful tax practices. The lack of effective exchange of information is one of the main criteria for determining harmful tax practices. The aim of the working group was to develop a legal instrument for the effective exchange of information. The aim of this agreement is to promote international cooperation in tax matters through the exchange of information. It was developed by the OECD Global Forum Working Group on Effective Information Exchange. Many countries have tax treaties with other countries (also known as double taxation agreements or DBAs) to avoid or mitigate double taxation. Such contracts may include a number of taxes, including income taxes, inheritance tax, VAT or other taxes. [1] In addition to bilateral treaties, multilateral treaties also exist. For example, European Union (EU) countries are parties to a multilateral agreement on VAT under the auspices of the EU, while a joint mutual assistance treaty between the Council of Europe and the Organisation for Economic Co-operation and Development (OECD) is open to all countries. Tax treaties tend to reduce taxes in one contracting country for residents of the other contracting country in order to reduce double taxation of the same income. The agreement is the standard for the effective exchange of information within the meaning of the OECD`s initiative on harmful tax practices.

This agreement, published in April 2002, is not a binding instrument, but includes two models of bilateral agreements. A number of bilateral agreements were based on this agreement. [36] As a general rule, the benefits of tax treaties are only available to taxpayers in one of the contracting states. [8] In most cases, a person who is tax resident in a country is any person taxable under that country`s national law because of their home, home, place of insertion or similar criteria. [9] The working group was made up of representatives from OECD member states and delegates from Aruba, Bermuda, Bahrain, the Cayman Islands, Cyprus, the Isle of Man, Malta, Mauritius, the Netherlands Antilles, Seychelles and San Marino. . Businesses may be considered residents because of their country of residence, their country of organization or other factors. [15] The criteria are often defined in a contract that can improve or repeal local law. Most contracts allow an organization to reside in both countries, especially where there is a contract between two countries with different standards of residence under their national legislation. Some contracts provide for “tie breaker” rules for the residence of companies[13] others do not apply it. [16] Residence is not relevant to certain businesses and/or types of income, as members of the company are subject to tax and not to the business. [17] The OECD has moved from effective management to a case-by-case dementia (MAP) solution to determine dual residence conflicts.

[18] Almost all tax treaties provide a mechanism for taxpayers and domestic disputes to settle the contract. [37] As a general rule, the government authority responsible for enforcing dispute resolution procedures under the treaty is referred to as the country`s “competent authority.” The competent authorities are generally empowered to engage their government in certain cases. The treaty mechanism often invites the relevant authorities to agree on dispute resolution. While tax treaties generally do not set a period for which business activities must be carried out on a site before reaching an MOU, most OECD Member States do not find an MOU in cases where a head office has been in existence for less than six months, without any particular circumstances. [22] Many contracts explicitly provide for a longer threshold, usually one year or more, for which a construction site must exist before a stable establishment is achieved. [23] In addition, some contracts in which at least one party is a developing country have provisions that believe that an MOU is provided when that