Dependent Agents as Permanent Establishments
1. Aufl. 2014
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Kasper Dziurdź
S. 248I. Introduction
Article 15(1) of the OECD Model Tax Convention on Income and on Capital (the OECD Model) establishes the general rule as to the taxation of income from employment, i.e. the place-of-work principle. Such income is primarily taxable in the contracting state in which the employment is actually exercised. However, article 15(2) of the OECD Model – the 183-day rule – provides an exception to the place-of-work principle. The income is taxable only in the employee’s residence state if:
the employee is present in the source state for a period or periods not exceeding in the aggregate 183 days in a given 12-month period;
the remuneration is paid by, or on behalf of, an employer who is not a resident of the source state; and
the remuneration is not borne by a permanent establishment (PE) which the employer has in the source state.
The object and purpose of the 183-day rule is to facilitate the international movement of personnel and the operations of enterprises engaged in international trade. If income in respect of an employment exercised in the source state is taxable only in the residence state, presumably under the source state’s domestic law, there is no obl...