Introduction to the Law of Double Taxation Conventions

S. 414 The interpretation of double taxation conventions

4.1 Principles of interpretation in international law

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The interpretation of DTCs follows the principles of international law. These principles are codified in Art. 31 et seq. of the Vienna Convention on the Law of Treaties (VCLT). The VCLT itself is an international convention. According to international law doctrine, it also applies to agreements concluded before its ratification (cf. Vogel/Prokisch, in IFA (ed.), Interpretation, 66).

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Pursuant to Art. 31 (1) VCLT, a treaty must be interpreted in good faith with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose. For the purpose of the interpretation of a treaty, Art. 31(2) VCLT provides that the context includes, “in addition to the text, including its preambles and annexes”, any agreement made between the parties in connection with the treaty as well as any instrument which was made by one or more parties in connection with the conclusion of the treaty and accepted by the other parties as an instrument related to the treaty. Art. 31(3) VCLT requires that together with the context, there shall be taken into accoun...