The (un)certain future of tax sparing credit in international tax treaty law
2022
Preuzimanje 🢃
Članak u časopisu (Objavljena verzija)
Metapodaci
Prikaz svih podataka o dokumentuApstrakt
Tax sparing clause emerged in double taxation treaties 63 years ago. Despite criticisms, it can presently be found in about 15% of all treaties, with Serbia having this clause in 46% of its double taxation agreements. It is the authors' view that this provision represents a confirmation of the right to introduce tax incentives as a part of a country's right to tax, while pointing out the necessity of preventing abuses of the provision. After conducting an analysis of the effects of tax sparing on foreign direct investments in Serbia and outgoing investments of Serbia's residents, the remaining portion of the paper is dedicated to exploration of the interaction between GloBE Income Inclusion Rule and tax sparing. Their incompatibility, which implies that tax sparing would be annulled under BEPS 2.0, may be overcome via a specific carve-out, but at present such initiative is not endorsed by Inclusive Framework on BEPS.
Ključne reči:
Tax sparing credit / Substance-based carve-out / Income inclusion rule / Foreign direct investments / Double tax treatyIzvor:
Anali Pravnog fakulteta u Beogradu, 2022, 70, 3, 627-676Izdavač:
- Univerzitet u Beogradu - Pravni fakultet, Beograd
Institucija/grupa
Pravni fakultet / Faculty of Law University of BelgradeTY - JOUR AU - Popović, Dejan AU - Ilić-Popov, Gordana PY - 2022 UR - https://ralf.ius.bg.ac.rs/handle/123456789/1331 AB - Tax sparing clause emerged in double taxation treaties 63 years ago. Despite criticisms, it can presently be found in about 15% of all treaties, with Serbia having this clause in 46% of its double taxation agreements. It is the authors' view that this provision represents a confirmation of the right to introduce tax incentives as a part of a country's right to tax, while pointing out the necessity of preventing abuses of the provision. After conducting an analysis of the effects of tax sparing on foreign direct investments in Serbia and outgoing investments of Serbia's residents, the remaining portion of the paper is dedicated to exploration of the interaction between GloBE Income Inclusion Rule and tax sparing. Their incompatibility, which implies that tax sparing would be annulled under BEPS 2.0, may be overcome via a specific carve-out, but at present such initiative is not endorsed by Inclusive Framework on BEPS. PB - Univerzitet u Beogradu - Pravni fakultet, Beograd T2 - Anali Pravnog fakulteta u Beogradu T1 - The (un)certain future of tax sparing credit in international tax treaty law EP - 676 IS - 3 SP - 627 VL - 70 DO - 10.51204/Anali_PFBU_22301A UR - conv_582 ER -
@article{ author = "Popović, Dejan and Ilić-Popov, Gordana", year = "2022", abstract = "Tax sparing clause emerged in double taxation treaties 63 years ago. Despite criticisms, it can presently be found in about 15% of all treaties, with Serbia having this clause in 46% of its double taxation agreements. It is the authors' view that this provision represents a confirmation of the right to introduce tax incentives as a part of a country's right to tax, while pointing out the necessity of preventing abuses of the provision. After conducting an analysis of the effects of tax sparing on foreign direct investments in Serbia and outgoing investments of Serbia's residents, the remaining portion of the paper is dedicated to exploration of the interaction between GloBE Income Inclusion Rule and tax sparing. Their incompatibility, which implies that tax sparing would be annulled under BEPS 2.0, may be overcome via a specific carve-out, but at present such initiative is not endorsed by Inclusive Framework on BEPS.", publisher = "Univerzitet u Beogradu - Pravni fakultet, Beograd", journal = "Anali Pravnog fakulteta u Beogradu", title = "The (un)certain future of tax sparing credit in international tax treaty law", pages = "676-627", number = "3", volume = "70", doi = "10.51204/Anali_PFBU_22301A", url = "conv_582" }
Popović, D.,& Ilić-Popov, G.. (2022). The (un)certain future of tax sparing credit in international tax treaty law. in Anali Pravnog fakulteta u Beogradu Univerzitet u Beogradu - Pravni fakultet, Beograd., 70(3), 627-676. https://doi.org/10.51204/Anali_PFBU_22301A conv_582
Popović D, Ilić-Popov G. The (un)certain future of tax sparing credit in international tax treaty law. in Anali Pravnog fakulteta u Beogradu. 2022;70(3):627-676. doi:10.51204/Anali_PFBU_22301A conv_582 .
Popović, Dejan, Ilić-Popov, Gordana, "The (un)certain future of tax sparing credit in international tax treaty law" in Anali Pravnog fakulteta u Beogradu, 70, no. 3 (2022):627-676, https://doi.org/10.51204/Anali_PFBU_22301A ., conv_582 .