Double Taxation Agreements And Developing Countries

The ultimate objective of this project was to support the development of a comprehensive set of capacity-building instruments for use in developing countries, which would be demand-driven, adequately reflect the needs of these countries and complement existing capacity instruments. This book aims to strengthen the capacity of national tax authorities and finance ministries in developing countries to effectively identify and assess their needs for negotiating and managing tax treaties. The ten chapters were developed by leading international tax experts based on contributions from national tax officials in 35 developing countries representing all regions of the world. Through a new demand-driven approach, it provides developing countries with practical guidelines for the effective implementation of double taxation conventions, particularly those based on the UN Double Taxation Convention, taking into account the special needs and interests of these countries. The literature estimates that approximately 3,000 double taxation agreements (DBAs) are in force, which is only a fraction of the number of potential bilateral tax relationships, as there is no centralized, comprehensive and public database. The vast majority of bilateral DBAs are largely based on the OECD model income and capital tax treaty (OECD model) and the UN Convention on Double Taxation between developed and developing countries (UN model). The main difference between the models is that the UN model retains a greater share of the tax duties of the country of origin (i.e. the country where the investments are made). The literature shows that the redistribution of tax duties to the country of residence after the signing of a DBA is not so problematic between two economies that have largely reciprocal positions of foreign direct investment (FDI). According to the literature, there is a significant asymmetry of 1L and capacity asymmetry in negotiations between high- and low-income countries, which affect the outcomes of the DBA double taxation agreements and D4D-Helpdesk reports, which provide summaries of research results, knowledge and results. This report was commissioned by the UK Department for International Development, E. and Timmis, H.

(2018). Convention on Double Taxation and Developing Countries. K4D helpdesk report. Brighton, UK: Institute of Development Studies. The literature estimates that approximately 3,000 DBAs are in effect, but there is no centralized, comprehensive and public database.