Tax Cooperation Policy Brief 14, June 2021
The Tax Sovereignty Principle and Its Peaceful Coexistence with Article 12B of the UN Model Tax Convention
By Kuldeep Sharma, ADIT (CIOT, UK)
Article 12B of the United Nations (UN) Model Tax Convention (MTC) provides developing countries with a practical and easy way to administer policy solutions for taxing the digital economy, in particular income from Automated Digital Services. It merges seamlessly with the existing provisions of the UN MTC and it is completely aligned and coexistent with the Tax Sovereignty Principle.
L’article 12B du Modèle de Convention fiscale (MTC) des Nations Unies (ONU) offre aux pays en développement un moyen pratique et facile d’administrer des solutions politiques pour taxer l’économie numérique, en particulier les revenus des services numériques automatisés. Il s’intègre parfaitement aux dispositions existantes du MTC des Nations Unies et est complètement aligné et coexistant avec le principe de souveraineté fiscale.
El artículo 12B del Modelo de Convenio Tributario (MTC) de las Naciones Unidas (ONU) ofrece a los países en desarrollo una forma práctica y sencilla de administrar soluciones políticas para gravar la economía digital, en particular los ingresos procedentes de los Servicios Digitales Automatizados. Se integra perfectamente con las disposiciones existentes del MTC de la ONU y está completamente alineado y coexiste con el principio de soberanía fiscal.
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This article was tagged: Article 12B, Automated Digital Services, Digital Economy, Digital Taxation, Equalisation Levy, Fees for Technical Services (FTS), HLP on International Financial Accountability Transparency and Integrity for Achieving 2030 Agenda (FACTI Panel), Permanent Establishment, Tax, Tax Cooperation, Tax Cooperation Policy Briefs, Tax Dispute Resolution Mechanism, Tax Law, Tax Policy, Tax Reform, Tax Sovereignty, Taxing Rights, UN Model Double Taxation Convention, UN Model Tax Convention, UN Tax Convention, United Nations (UN), United Nations Committee of Experts on International Cooperation in Tax Matters (UNTC), Withholding Taxes
