Non-Discrimination in European and Tax Treaty Law

I. S. 336Double Tax Treaties and the role of Article 24 OECD MC

Globalization has reduced the distance between countries and it has ensured the easy movement of people and capital around the world. However, for this reason, some issues arise when either companies or entrepreneurs decide to make investments in different countries. Not only are the culture and habits distinct, which in themselves is already a major challenge, but legislation, especially with respect to taxation, may constitute an obstacle. Thus, aiming at reducing uncertainty regarding tax matters, countries start negotiations to try to enter into agreement and sign a treaty with the objective of avoiding double taxation or even double non-taxation. Despite that important aim, double tax treaties (hereinafter “treaties”) are concluded for many other reasons, such as to indicate the method to relieve double taxation and exchange of information, for example.

First, when two countries begin negotiations, they recognize that they have a good relationship and the desire to increase trade among their national companies. There is no doubt that countries want to conclude treaties to protect their nationals and residents, to grow the...